SPX Is Charging Up For A Big Year-End Move. What Way? December 6th Plan

After rallying 460 points from October 27th to November 22nd high with only a mere three mini-red days in the process, ES has been stuck in consolidation since then and for two weeks now, ES has been largely stuck between 4550-55 support, and 4575-80 resistance, making the round trip countless times and testing 4550-55 support and incredible 29 times since Nov 22nd.

I wrote in yesterdays newsletter: “We remain stuck in a total chop zone between 4555 and 4580. This zone will remain a choppy, difficult, trap-filled level to level traders range and we could trade in this zone all week easily” concluding the newsletter with “My general lean is as long as 4555 keeps holding, we can fill out this range then ultimately push to 4597, 4609, then 4618 target”. What did we do today? No surprise yet again, we sold down to 4555 (which was the exact low of day), then filled out the range back to 4580. 4555 has been my buy zone all week, and has been massively lucrative for countless payable bounces.

Why has ES been consolidating for 2 weeks? Two very simple reasons: 1) We just rallied 470 points and 2) The market is awaiting major catalysts coming up (CPI, FOMC, NFP). In today’s newsletter I’ll go over the setup that got me long today as per yesterdays plan, discuss targets, then break down the actionable trade plan for tomorrow.