SPX Finally Pulls Back - Will Buy The Dip Kick Back In? November 29th Plan
The “thanksgiving seasonal rally” in ES played out perfectly, but unfortunately for bulls who were spoiled last week, so did the “thanksgiving hangover trade”. As discussed in my last newsletter “Over the past 20 years while buying the thanksgiving week was green 75% of the time, holding that long until Mondays close turns that 75% win rate into a 40% win rate"
In my last newsletter I also wrote: “If 4010 fails and the post-thanksgiving sell kicks in, I’ll be looking short”. Bears managed to trigger that overnight/this morning and today, ES put in its largest red day since Wednesday November 9th and retraced nearly 60% of the rally that leg that began on November 17th.
Despite this though, what does it mean big picture? While we had a good dip, we are ultimately just back where we were two weeks ago and going sideways on the daily chart. In today’s newsletter, I’ll discuss the new pattern I see forming, targets, and the actionable plan for tomorrow.