We Are Coiled Tight in SPX For Another Big Move. What Way? Nov 28th Plan

We are in the final stretch of November and its certainly been one for the record books with only 3 proper red days now. The bulk of it started on November 14th when we had one of the most powerful bullish setups that can present: The breakout of a 4 month, down-trend channel. This coincided with CPI, and when you combine a powerful technical setup, with a catalyst, you get the last month.

Since that date every micro-dip has been bought and the largest sells we have had since then have only been ~30 points. My target for the most recent leg of this rally has been 4580, and I wrote early last week: “My general lean is as long as we keep holding 4536, we can base build then head up to 4580”. After clipping 4580 Wednesday, ES has spent the last 3 three trading days building a base underneath, with all micro-dips bought. We are basing again for a move.

I wrote in my last newsletter: “For Monday, [the bull case] will depend on two levels: 4554, and the 4542-36 zone defending on dips. As long as those continue to hold, the parabolic run continues with no proper sell” and we tested 4554ish six times today. Are we simply basing another rally? In todays newsletter I’ll talk this, I’ll then go over how I determine when the trend is done and price is ready to sell. I’ll then talk the actionable trade plan for tomorrow.