SPX Has Arrived At *Major* Resistance; Can Bulls Breakout? September 15th Plan

Traders were finally rewarded big today after yesterdays chop and we got the move I have been waiting on and positioned for all week. As readers know I got long at 4503-97 yesterday morning after CPI, adding to my long at 4518 at the close yesterday, writing: “I have added a little back into the close at 4518. I will continue holding onto this so I have some exposure for any breakout”. We had an incredible run on this long from 4503 and the reason for this is because we put in my core setup yesterday morning: The failed breakdown. This is how institutions trap shorts and enter longs, and we got 60+ points of follow through off it.

I concluded yesterdays newsletter by writing the following: “My general lean is unchanged - as long as 4502 keeps holding, we can test 4540ish, perhaps final dip, then head up the levels to 4556 then 4565-70”. This is *precisely* what we saw today: We rallied to 4540ish, saw a dip, then continued up the levels making it to 4560+. As readers know I have been bullish all week looking for 4565 due to the fact that this was resistance of a multi-month triangle, and triangles fill out.

We are now up 65 points from this Wednesdays low though with some heavy resistances overhead. Can bulls keep it going? In today’s newsletter, I’ll talk this, then I’ll go into detail over the setup that started this run (its essential to learn to catch the next one). I’ll then provide the actionable trade plan for tomorrow.