Three Huge Green Days In A Row For SPX; Pullback Time? November 2nd Plan
Today was FOMC day and we saw continued squeeze higher as longs continue to pay out. My newsletter back on Sunday was entitled: “Is SPX Getting Close To Capitulation” and this week started off with a firm yes rallying 100+ points from Friday’s low to todays high. Why have we rallied all week? I concluded that same newsletter by writing “If 4154 reclaims off the bat Monday, we start up direct. We should see a few large green days next week”. Monday started off with this reclaim - which put in a failed breakdown bottoming trigger - and got me long for the week. Its followed up with three large green days in a row as stated.
My initial target for this run up was 4247-50, and I wrote yesterday: “The relief bounce that began Sunday is in play as long as we are above 4257, ES is on track for a green week with 4247-50 being the obvious magnet”. We managed to spike 50 points this morning, right into 4247-50 weekly target before dipping once, then clearing it late day.
We are now three green days in a row for ES. Is a 4th incoming, or will we finally see a dip? In today’s newsletter I’ll talk this, I’ll breakdown the setup that triggered my longs today/this week (which was provided yesterday), and I’ll then provide the actionable trade plan for tomorrow.