SPX Is Coiling For A Large Move. December 29th Plan
In yesterdays newsletter, I talked about how ES was building a multi-day triangle pattern with support ~3810 lowest, resistance 3895, and how everything inside this is going to be tactical, choppy, trading. I wrote yesterday that I was looking for this structure to fill out more, writing “Any spikes to 3810 I’d want to see recover 3830 quickly within the hour”. ES tested 3810 which was low of day, and has closed the session sitting on the edge of a massive support.
Zooming out though, despite the afternoon selloff today one thing is clear: ES is now the same price as December 20th, and ES has generally gone nowhere since mid-December, playing ping pong between the low 3800s and the high 3800s for over a week. Quite simply, it is building a base after Decembers massive selloff, and this means a big move is coming.
So far, the much spoken about Santa Rally phase (which still has 4 days left) has been a total flop, with price back at the low 3800s support that has been tested all month. In today’s newsletter, I’ll be talking the precarious spot ES is now in, the pattern forming here, and the actionable trade plan for tomorrow