Multi-Year Breakout For SPX, But Will FOMC Spoil The Party? Jan 30th Plan

In the last two days newsletters, I emphasized the critical bullish setup that had triggered: Not only did ES clear its 200dma and hold above for multiple days, but on Wednesday it also broke out its primary downtrend line from January 2022. As readers know, for this reason I was long from 4038 or so yesterday, stating that I’d be holding long today.

I wrote yesterday: “My general lean is as long as 4045 continues holding, that we see something like 4080, reaction, then on to 4100-4110”. This played out perfectly, and we got 4100-4110 today then dipped late day. While this week was a very straightforward bullish setup, and the context is obviously bullish, we have now rallied 135 points this week with nearly no real dip, and importantly FOMC is coming up next week.

In today’s newsletter, I’ll be talking the bull flag setup that got me into today’s long, discussing the risks and big picture view into FOMC next week, then talking the actionable trade plan for Monday