Multi-Month Breakout In SPX Just Triggered. What Target Next? June 5th Plan

As readers recall, I got long yesterday at 4193 via the textbook failed breakdown setup (my core trading setup), and was holding longs into today as posted, and this yet again turned into one of the best trades of 2023 for a 100 point move. Readers likely recall me saying the exact same thing last Friday for my long late last week, and it’s no coincidence.

My Wednesday evening newsletter was entitled: “Thursdays And Fridays Have Been Good For SPX Recently. Can It Repeat?” where I discussed how Thursdays and Friday’s recently (6 of the 8 last weeks) have seen violent rallies, and it delivered again this week. It is also worth noting that today, we clipped my multi-month target. I wrote yesterday: “Resistance is now 4280 and remains a magnet as I have said for months. It would be very surprising to not tag this level as part of this broader multi-month trend leg”. We finally got here

Now what though? In today’s newsletter, I’ll answer this, break down in detail the setup that triggered this rally and the mechanics behind it, then talk the actionable trade plan for Monday