SPX Is Consolidating/Resting To Setup A Large Leg; What Way? November 9th Plan

Yesterday, my newsletter was entitled “Incredibly Rare 7 Green Days In A Row For SPX, Pullback Close?”. As discussed, ES has been in the midst of a historic rally - putting in 7 green days in a row for the first time since November 2021. While today did see a dip, this “red day” was likely not what many bears were expecting, with the dip rapidly bought ES closing only marginally off the recent highs.

To demonstrate the extreme magnitude of this recent 8 day rally, today’s 31 point micro-dip was the largest we have seen since October 27th. I wrote yesterday: “I consider any significant direct upside from here as purely bonus as it would be a statistical anomaly” and ES agreed, opting to essentially spend the day consolidating after a morning dip to close virtually unchanged from yesterday. Interestingly, ES has now spent since Friday in consolidation mode roughly around the 4385 level. This consolidation will certainly produce another large move.

Do bulls have anything left though? In today’s newsletter I’ll talk about bull flags (which was the setup that produced yesterdays and ultimately today’s pop higher), talk about what the sell triggers are for any real pullback, then provide the actionable trade plan for tomorrow.