Very Rare 4 Green Days In A Row For SPX, Pullback Close? Oct 27th Plan
As readers know, last Friday ES broke out from a nearly month long inverse head and shoulders/diamond bottom base, and we subsequently went into lift off mode. I am a day trader, but I am also a massive proponent of zooming out and letting the *higher time frame pattern* control my intraday decisions. 3860-70 was my target for this new breakout leg, and it clipped yesterday.
I wrote in yesterday’s newsletter: “My general lean is that we ultimately continue up here to 3895-3900, then 3925, but ideally we get a dip 1st”. After an overnight pullback into supports last night we squeezed to 3895-3900 today then bulls ran out of steam. Its no surprise, ES put in a very rare 4 green days in a row. While this has happened multiple times this year, they all typically saw 1 or more red days after and ES has not gone 5 green in a row yet this year.
While bulls remain in control after the recent breakout, the risk of pullback or sideways consolidation is growing now. In today’s newsletter, I’ll go over what this may look like, what the obvious target now is, and the actionable plan for tomorrow