Multi-Week Breakout For SPX, What Is The Target Now? July 13th Plan
As readers recall, I had been running longs since the ~4420 entry provided in last Friday’s newsletter, trailing stops via my trailing stop system, and this turned into one of the biggest (in point terms) moves of 2023 for me. Why did we rally from 4420ish to 4500+? As written extensively (and as always in markets) it does not take a PhD in finance, complex understanding of option market dynamics, or ability to do anything other than draw lines to understand: From the original June highs ES built a simple, classic ascending triangle pattern with 4420 support early this week, and 4490ish resistance.
What did we do this week? We dipped to 4420 support, put in a textbook failed breakdown entry right at triangle support, ran to triangle resistance at 4490 before CPI, then broke it out today and squeezed. These are basic principles that repeat over and over, multiple times a month, and available for the taking for those who are simply willing to tune out the noise and focus on price.
We have broken out a multi-week chart pattern, and as readers know, the targets on this (mentioned for subscribers) are much higher. New leg up beginning? In today’s newsletter, I’ll address this, break down the sequence of setups that presented entries into today’s rally, then provide the actionable plan for tomorrow.