Major Inflection Point Is Here For SPX: February 20th & 21st Plan
Note: This is a re-send of the newsletter originally sent out on Friday, including the complete trade plan for Monday/Tuesday of this week, for those who did not receive.
I concluded my last newsletter by writing: “Major warning - tomorrow is OPEX day. OPEX days are notoriously terrible to trade and many of these days are trap-laden and follow-through poor.” This could not have been more true today and we spent from 4am to essentially 2pm Friday in 20 point range, with 10 1hr candles stacked side by side.
As readers know, I was short heading into Friday from 4097 with 4075 target, and this multi-level move down overnight was one of the few clean ones we had Friday, before spending all day chopping ~ the 4075 level before an afternoon squeeze. While Friday’s action was largely just OPEX noise, it is important to zoom out: For the entirety of February ES has been stuck in a sideways consolidation, forming a large bull flag structure. Friday’s low defended support of this multi-week structure.
Given this, its now make or break time for the bull case in ES. In today’s newsletter, I’ll address the major inflection point we are at, talk my system to trading breakouts and breakdowns (such as the one that got me short at 4pm Thursday), then provide the actionable trade plan for Mon/Tues