Powell Spikes SPX, Is A Major New Leg Up Beginning? December 1st Plan
My last newsletter was entitled “Consolidation Day - Big Wednesday Incoming” and this was certainly aptly named. As readers know, compression leads to expansion and to say we “compressed” the last two days would be an understatement. For two days straight - we were glued to 3955-60. We trapped above, trapped below, over and over.
As written yesterday today was all about Powell speaking at 1:30PM and as expected, this was finally the catalyst to break out of this range and ES put in a vertical, 150 point breakout squeeze. This is extremely similar to Nov 17-22nd where ES also chopped at 3955-60 for days before squeezing up 100 points.
For nearly two weeks, I had discussed how the 3960 level is critical for the bull case, and today, after a failed breakdown below, ES defended it violently. Most importantly, ES has now cleared its 200 day moving average for the 1st time of this bear market, as well as broken its November highs. In today’s newsletter, I’ll be talking about what this means, the broader pattern that is breaking out here & its targets, the plan for tomorrow, and how I traded today’s action (the good & the bad)