We Have Broken Out Again In ES; What Is The Next Upside Target? Jan 24th Plan

Friday was an very technically significant day in ES, as after a full month of consolidation in a largely 100 point range, ES finally put in an explosive breakout to fresh new highs, formally starting a new leg higher. This breakout, however, did not occur suddenly and was instead preceded by 2 prior days of upside, with the entire sequence from last Wednesdays low to yesterdays high compromising a 150+ point, three green day squeeze.

This rally last Wednesday started the same way all rallies do, with my core setup triggering - the failed breakdown - and this got me long Wednesday at 4761 as readers know, which thanks to the trade management system has been my longest held trade in many weeks, for nearly one full week now and 150+ points. I wrote yesterday: “I have my stop around 4871 now” and this *continued* to hold today, keeping me in the long for yet another session. I concluded yesterday by writing: “This means as long as ES continues holding that messy 4870-80 support cluster, we can base out then run to 4906+” and we managed to defend it today and continue the rally.

How much farther do we have to go? In todays newsletter I’ll talk this, I’ll then do a deep dive into my trailing stop methodology (the one that kept me in the long from 4761 last Wednesday until today). I’ll then talk the actionable trade plan for tomorrow.