SPX Puts Its 1st Two Green Days In A Row Since Sept 9th. Can It Keep Going? Oct 5th Plan

Bulls finally did something different - after nonstop selling since the September 13th peak with no more than 1 green day in a row, ES finally broke the streak putting in two consecutive green days in a row for the 1st time since September. This begins the 5th bear market rally of 2022. Of course, this is fairly meaningless as a stand-alone statistic, but the context surrounding it is important.

These two massive green days came after ES hit my critical support of 3575, which is a multi-year channel support from Covid lows, in addition, ES undercut and recovered the June lows putting in a failed breakdown. Combined, these are powerful bottoming signals. As a result in yesterdays newsletter I wrote: “My lean is that bulls try to put in a rare few day relief rally (3745, dip, 3785 minimum)”. We spent most the day around 3785.

The big question is, can bulls continue running it? In todays newsletter, I’ll address that & talk targets, talk about why the 1st pullback leg of this rally will determine what the rest of October looks like, then talk the actionable trade plan for tomorrow