The "Santa Rally" Came Early This Year For SPX; Or Has It? Dec 20th Plan
Santa certainly came early this year for bulls and today, ES finally arrived at the 4810-12 target zone that readers know I have been waiting on/positioned for many weeks. In this case, it took an incredible 9 consecutive green days in a row to get here today capping off the best trade sequences of the year (and perhaps even the last two years).
I wrote in yesterdays newsletter: “4810-12. This is key blue channel resistance connecting the August 2022 and July 2023 highs and is the major magnet/target from here. This is has been my target for weeks, and we are close”. While we’ve had an incredible run, its worth noting that the traditional “Santa Rally” has not even begun yet, and specifically refers to the the last 5 trading days of the year, and first two of the following year (Dec 22nd to Jan 3rd). This is a seasonally strong period averaging a 1.3% gain annually.
We are now an incredible 9 green days in a row. Are bulls finally tapped out, or is more to come? In today’s newsletter I’ll talk this, break down in more detail the setup that got me long late last week/yesterday to position for this move (it is a good example of my core setup), then discuss the actionable trade plan for tomorrow.