Major Rally For SPX, Are Bulls Finally Out of The Woods? January 23rd Plan
In yesterdays newsletter, I discussed extensively how ES put in an extremely important bullish technical signal. By testing 3900 yesterday, it back-tested the three week base that ES was stuck inside from December 15th to January 6th, which broke-out explosively on January 6th. This was the shot for bulls to run, and they did.
Because of this, I wrote yesterday that my lean for Friday was “that as long as 3900 (ideally 3915-20) can continue holding, this final rally off 3900 can continue a choppy move up to 3945, then 3960”. This played out perfectly and after a quick morning dip into support, we rallied to 3945, 3960, then continued to run into the close. While bulls did exactly what they had to, where they had to on Friday, its still far from “all clear”. There are major resistances overhead.
In today’s newsletter, I’ll be zooming out at the big picture to talk what’s next, discussing how I traded Friday’s action via Thursday’s trade plan, then providing the actionable trade plan for Monday.