[Re-Send] SPX Put In Two Red Weeks; First Time Since Oct 2022. Will It Get Bought? March 18 Plan

Note: This is a re-send, the chart did not attach to the original due to a substack issue.

Yesterday, my newsletter was entitled: “SPX Has Snapped A 6 Week Long Bullish Streak.What Does It Mean?”. In today’s case, it meant more red to start the day. As readers know, the 6 week long bullish streak I was referring to referenced the fact that ES has seen a similar cycle all year: ES typically chops to start the week, and then for 6 weeks now, we have seen a parabolic Thursday rally (95, 55 and 85 point rallies respectively for the last three weeks).

This week was very different. Instead of seeing the usual Thursday rally, ES tried a rally early yesterday morning, and this evolved into a major failed breakout where we popped above the 5245 level that has been a ceiling all week, tried to breakout, then sold. An 80 point flush ensued and we sold down to 5168, and bounced. I wrote yesterday: “5168: Trendline connecting the Jan 17th and Feb 21st higher lows” and we tagged this exactly and set the low of the day.

Despite this minor bounce though, we have now put in 2 red weeks in a row for the first time since Oct 2022. Will it get bought? In todays newsletter, I’ll talk this, I’ll then do a full run down of the wide multitude of setups we saw yesterday (including, importantly, the rare setup that set the top yesterday and caused today’s: The Bearish Failed Breakdown. These have been infrequent in the past year). Finally, I’ll discuss the actionable trade plan for Monday.