SPX Is Building A Base For Another Big Move. November 17th Plan

As discussed, Tuesday was the most technically significant day in many months as ES finally broke out its core down-trend channel from the August high at 4424. This means that for the first time since August, ES is no longer making lower highs, flipping the trend. This breakout came with a substantial 130 point move. As readers recall, this resulted in one of the longest consecutive (unbroken) trades of the year for me with original entry on Friday at 4380s, until trailing stop finally triggered yesterday at 4514.

This run was part of a broader rally since the start of the month that has seen essentially only one red day out of 13 trading days. Today and yesterday, we finally began consolidation after this move. I wrote yesterday: “We are now in the post-trend consolidation phase and this will take flexibility. My general lean is as long as 4507-10 holds, ES can base build 4507-4535, and then push to 4543+ again”. ES certainly agreed here, testing 4507-10 precisely and an incredible 6 times (including one fast liquidity grab below) since yesterdays newsletter released and built a base all day.

ES spent the day resting and charging up, which means another big move is getting close. What way? In today’s newsletter I’ll talk this, I’ll go over how I approach trading tight range days like today, then I’ll talk the actionable trade plan for tomorrow.