The Most Bullish Month of 2023 in SPX Just Ended. How Will December Start? Dec 1st Plan
November was one for the record books rallying an incredible 470 points in the span of one month. This month of upside was largely “the fault” of one of the most textbook bullish technical setups: The breakout on November 14th of a 4 month, perfect down-trend channel. Thanks to my system of trailing stops combined with the market providing minimal volatility trend (at one point going 18 days green with only 2 small red), this has resulted in my personally best month of the year.
The month however that started with a bang, ended with a whimper the last week and we have spent the last week consolidating (mostly) 4555-4575, with the 4555 level being the strongest pin of 2023 so far, testing an incredible **21 times** in the last week with multiple traps below. I concluded my newsletter yesterday by writing: “Trading is likely to complex here - we are in a difficult spot now technically stuck inside a chop range with a bearish failed breakout present. Tomorrow will be a day for level to level traders”. Complex was probably an understatement, and we spent nearly the entire session effectively pinned to 4555, with a final, late day squeeze to cap off a bullish month.
We are now done with November, which has been the most bullish of 2023 so far, and we are stuck in a 10 day range, and about to start another move. What way will it break? In today’s newsletter I’ll talk this/the pattern forming, then provide my actionable trade plan for tomorrow.