Multi-Year Breakout Attempt For SPX, Now What? Jan 27th Plan
As readers know, I was long from 3981 yesterday, holding a small leftover runner into today’s session. The reason? ES has spent this week magnetized to the 4020-4050 zone, rejecting repeatedly off it and then springing back. Its no coincidence, with this being the core, widely watched down-trend line extending back to Jan 2022.
I wrote yesterday: “My general lean is that it fills out more with above 4035 triggering breakout up the levels to 4070”. This played out well today, spiking to 4068.25 in the morning, back-testing 4020-30, then ending the day right at my 4070 target. Despite all the volatility though, the core message is ES is now broken its core downtrend line from 2022, and in addition, has closed 4 full days above its 200 day moving average, for the 1st time since the bear market started.
This is obviously extremely bullish, but can it hold? In today’s newsletter I’ll be providing my view on the big picture of the market, talking how I traded today’s tactical environment via yesterdays provided plan, then providing the actionable trade plan for tomorrow.