Major Breakout For SPX, Can Bulls Sustain It Now? December 2nd Plan
In yesterdays newsletter, I wrote: “My general lean is we push to 4110-4115, try some sort of pullback there”. This could not have played out better today as we rallied to 4110 exactly immediately after markets opened, then pulled back hard ~60 points. While the rest of the day was fairly uneventful consolidation around the opening price, it is no coincidence where today set a low.
Yesterday, ES went into vertical melt-up mode after Powell spoke, squeezing 165 points. In doing so, it not only cleared its 200 day moving average for the first time in 2022, but is also broke out the 4 week triangle pattern discussed here for the last two weeks. This pattern in critical. Today, ES pulled back to back-test it, and it held.
While this is certainly bullish in multiple regards and difficult to interpret otherwise, the most significant, strongest, multi-month resistance is just overhead for ES, which complicates the picture. In today’s newsletter, I will be reconciling these two things, talking the targets for yesterdays breakout, and then discussing the actionable plan for tomorrow