Thanksgiving Rally Delivers, How Much More Does SPX Have Left? November 24-25 Plan
This is a re-send of the Thanksgiving newsletter sent yesterday, applicable for Thursday and Friday.
As readers know, I have been holding long since 3954 and the reason was that bulls had two big tailwinds going into this week. Firstly (and most importantly) ES spent the last 7 days in brutal sideways chop - this chop though built a textbook bull flag which made clear the direction we were heading, and yesterday we broke it out at 3965ish and this starts a new leg up.
On top of this, there is the now widely known Thanksgiving seasonality. As discussed recently - buying ES at yesterdays close would be green 75% of the time by Friday’s close over the past 20 years (including during 2002, 2007, 2008 bears). Despite being green the past few days though, there is no denying today’s move was quite labored & slow especially since a major pattern broke out yesterday.
RSI remains very overbought and risky - do bulls have enough energy to make it to the critical 200 day MA and beyond? In todays newsletter I’ll be discussing this, talking how I use the RSI in my strategy, and then discussing the plan for the next two days (both of which are holiday sessions)