BY LICIA LESLIE
November 15, 2023
That was a face ripper, right?
S&P 500 (Ticker: SPX) gapped open 47 points and never looked back.
The high was $4508, up 97 points!
Check out this bottom forming pattern in the Emini Russell 2000 Index:
See that? It is a head shoulders pattern signaling the bottom of the selloff.
And it has definitively broken the neckline.
Here it is on the IWM chart:
According to the rule, IWM will rally up to $190.
That is the difference between the head (low) and the neckline, add to the neckline.
We will have some resistance coming in at the 200 day moving average at $181.29.
I am shopping the Dec01 calls:
I like the 179/189 call vertical for $2.60 or less.
Use a close below the neckline, $175, for your stop loss.
Trade Review
As I said above, the S&P 500 Mini Options (Ticker: XSP) trade was a homerun up over 100%.
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Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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