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Its Been A Week Straight Of Upside For SPX. How Much More Is In The Tank?

Its Been A Week Straight Of Upside For SPX. How Much More Is In The Tank?

SPX Continues Its Uptrend

Market Maverick
February 18, 2025

Market Recap: SPX Continues Its Uptrend

The past three weeks have mirrored each other almost identically: bearish gaps at the Sunday open, steep selloffs, and then strong recoveries driven by institutional buying. This pattern has resulted in my core setup, the Failed Breakdown, playing out repeatedly and leading to substantial rallies.

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Last Friday, I highlighted a critical level: "For Monday, bulls will want to hold 6016-20. This would allow ES to work back up to range resistance, starting with 6066-70, then 6093, then onto 6129." On Sunday, ES hit 6016-20 precisely before rallying to 6129 by week’s end, marking a textbook trade setup.

With this repeated price action, SPX has effectively “painted” a massive three-week flag pattern ranging from 6020 to 6125. This range broke out last Thursday and Friday, setting up further upside into Monday and Tuesday. I wrote at 4PM Friday: "The ultra bull case for Monday-Tuesday is that ES can defend the three-week flag breakout at 6116-20. This would mean ES continues to flag out below 6138 or 6143 and above 6116-20." Monday morning, ES hit 6154 before retracing to 6120.

Can SPX Continue Higher?

After a week of straight upside, the key question now is: how much more is left in the tank? I’ll break down:

A deep dive into the Failed Breakdown from Thursday morning that fueled last week's rally.
The consistent daily Failed Breakdowns that presented multiple opportunities for traders.
The actionable trade plan for tomorrow.

Learn More:

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult a financial advisor before making investment decisions.