Rest Day For SPX; Another Big Leg Up Incoming? November 7th Trade Plan

Last week was one for the record books, with ES putting in the largest green week since the current bull market began in October 2022. It was quite unique in that not only did last week see 5 green days in a row, but it went the entire week without a single pullback more than ~30 points. This is extraordinarily rare. Interestingly, the prior largest green week before last week, happened to be *the exact same week* last year (first week of November).

Today, ES finally took a rest/consolidation day after a week of relentless upside and in my last newsletter I spoke about how the day after extreme trend days like Friday are often the worst trade and “consolidation risk is high” and we spent all day stuck in a tight range. I wrote Friday: “First support down on Monday is 4367-65 and this will be key” and we dipped to ~4365 low of day bounced out, and spent the rest of the session consolidating.

The question now: Are we basing for another big leg up? In today’s newsletter I’ll talk this and describe what pattern is forming here, go over the setup that triggered Friday’s major 60 point squeeze as well as my trailing stop system, then provide the actionable trade plan for tomorrow.