Major Catalysts Incoming Next Week For SPX; Can Bulls Keep The Run Going? Jan 29 Plan

One week ago today, something very important happened in ES. After spending a full month building a huge base under 4830 or so (to form a textbook bullish inverse head and shoulders pattern), ES broke out. What followed afterwards is what almost always follows major multi-month breakouts: After an initial explosive move last Friday that ran 70 points in a single session, we spent this week largely grinding higher, with all dips being bought.

My newsletter 1 week ago was entitled: “SPX Breaks Out A 1 Month Range, Starting A New Leg Up. What Are The Targets?”. The answer as stated then was was 4920-35. I wrote last Friday my general lean was: “Pop to 4880-83. If ES to try a dip to backtest supports, its there, before we continue up to 4903, 4920-35” and after hitting 4880 early in the week, based out for a day, and rallied to 4920-35 where we have been stuck since Wednesday now, acting as a ceiling.

Since Wednesday, we have been stuck in a brutal range, and I wrote yesterday: “Everything between 4895 and 4925 is now complete chop, noise, and will be very difficult to trade inside. If you over-trade in this range, you will lose”, and we spent all day chopping up in this. We are now consolidating to setup a big move next week, and we have multiple catalysts including FOMC. Will it be higher? In today’s newsletter I’ll talk this, I’ll then discuss my secondary setup (the back-test), I’ll conclude by providing the actionable trade plan for Monday.