SPX Is Green 15 of The Last 17 Weeks. Can February Close Red? Feb 26th Plan

NOTE: This is a resend of the newsletter for Monday February 26th, originally sent out on Friday afternoon, for those who did not receive.

Last week, ES finally put in a small red week, after 5 green weeks in a row. What happened after this rare red week? The same thing that happened after the prior red week we had way back back on the week of January 2nd. It was violently bought up. To put the magnitude of this broad rally in context, we have now only had two red weeks in the last 17 weeks, for an incredible 15 of the last 17 weeks green.

I use the word violently bought up, because Thursday’s session was the largest green day for ES since November 2022. As readers know, I have been long since 4970s on Wednesday afternoon, a setup provided for readers when I wrote at 3:20PM “One could long above 4971 which was the cluster of lows from yesterday we broke down late day today (perhaps 4973 entry)”. As discussed in massive detail, thanks to the vertical, no-pullback nature of this rally and my trailing stop system, I have been able to stay in this trade since, resulting in my largest one trade-gain in recent memory. I wrote yesterday: “I am still holding my runner from 4976 and will exit this as per the trailing stop system”.

After the biggest green day since November 2022 and now five of the last six weeks green, can ES finally see some dip to end the month? In today’s newsletter I’ll talk this, I’ll then do a further deep dive into my trailing stop methodology, which kept me long from 4976 until 5100+ today. Finally, I’ll discuss the actionable trade plan for Monday.