Three Red Weeks In A Row For SPX, Is 4 Incoming? Feb 27th Plan

This week was the third red week in a row for ES, and in 2023 so far, three weekly candles in a row where new lows were made on each has been a rarity, occurring only once back in December where the third week marked the low and began a 6 week rally.

The technical cause of this sell-off was clear: My newsletter 1 week ago was entitled “Major Inflection Point is Here For SPX”. The inflection point was that we were sitting right at support of a multi-week bull flag, below which I wrote would trigger shorts and the bear case. It lost Monday and the rest of the week was history.

Since then, more technical damage has been done, we also lost the core up-trendline from Octobers low. Many have pointed out that seasonality is bearish from mid-February to early March, and given this plus the above, is more red ahead? Today, I’ll be addressing this + the very big picture, talking some of my core trading rules, then providing the actionable plan for Monday.