The Rally Continues Into Mid-Terms For SPX, Can It Sustain? November 8th Plan
On Friday’s newsletter, I talked about how bulls put in an extremely important bullish technical signal: By rallying hard out of the 3720 level on Friday ES not only 1) Held the 50% retracement of the Friday rally but also 2) Back-tested and defended the perfect inverse head and shoulders pattern that broke out Oct 21st. Technical analysis 101 and we saw a good rally Friday, and it continued today.
In yesterdays newsletter I wrote: “My general lean is that we can ideally base under the 3790 level, then try the continued push up to 3820, then 3850ish”. This was largely today, and we spent most the day basing under 3790 level and then made the late day push towards 3820. While ES has put in a couple green days off a “must hold” zone, much like last week which was all driven by FOMC and Jobs, this week will be driven by mid-terms then CPI on Thursday.
Last week we saw major, hard-to-trade volatility based off these events, and I’d expect the same this week. In today’s newsletter, I’ll be talking a new pattern forming here, and the actionable plan for a tricky few days.