Three Straight Days Of Massive Uptrend For SPX. Pullback Time? October 11th Plan
I started yesterdays newsletter by writing: “Last Friday was the most technically significant days in weeks” and the 70 point squeeze we saw yesterday, then additional 50 point squeeze we saw today, readers can certainly see why. On Friday, ES put in an important macro bottoming trigger: It reclaimed the 4310 level its core bull market trendline from October 2022, putting bulls firmly back in control. This also happened to correspond nicely with the start of bullish October seasonality - which remains so until mid-November.
This made trading this week straight forward, I wrote on Sunday “As long as we are above 4310 bulls control. We can pull back all the way there and it simply a healthy retracement”. We pulled back there to back-test Sunday/Monday, triggering longs and this has resulted in a 100+ point two day rally. I was holding those longs into today, as readers recall writing yesterday: “My general lean remains unchanged … Ideally, ES can build a base between 4375-80 and 4336, then begin its next leg up to 4400, then 4418-24”. We built a tight overnight base, and ran to 4418-24 target exactly and sold
We are now +175 points from Friday’s low though, without even a healthy minor retracement (outside of the Sunday opening gap). Is it time for a dip, and where to after? In today’s newsletter I’ll talk this, I’ll then breakdown the setup lead into the tradeable rally we’ve had for the last 2 days. I’ll then talk the actionable trade plan for tomorrow.