SPX Closes Week Above the 200 Day Moving Average For 1st Time - Big December Incoming. December 5th Plan
NOTE: This is a resend of the newsletter for tomorrow Monday December 5th, which was originally sent out Friday for those that did not receive
In yesterdays newsletter (Thursdays) I warned to expect “tactical” trading ahead, writing: “We are chopping now and this type of action could continue before get any clean trend”. This described today’s trading perfectly. A trader looking just at closing prices would think almost nothing happened from yesterday, but in reality we saw a 70 point spike down this morning, then 70 point recovery to close unchanged. “Tactical” trading it was.
Big picture though, ES did something fairly important and this week managed to close above its 200 day moving average at ~4050 for the 1st time since the 2022 bear market began. As I have written before, this is significant as many bear markets (including 2007s) ended with a single daily close above the 200 dma.
While this seems optimistic for bulls, key to remember FOMC and CPI are still ahead in second week of December which can easily produce multi-hundred point moves either way. In addition, we are right below major resistance. In today’s newsletter, I’ll be talking the setup into next week, how I trade complex days like today, and the actionable plan for Monday.