1st Pullback In 7 days for SPX, Is More Ahead? April 5th Plan
After 7 a straight day, 190 point rally where every micro 20-30 point dip was rapidly bought up within an hour or two, ES finally saw a good, healthy multi-level pullback day. I wrote in yesterdays newsletter: “My general lean for tomorrow is as long as 4138-40 keeps holding, we base and chop more, then get a pop to 4165, perhaps 4175, before dipping again”. This played out, as we popped to 4172 high overnight, before the pullback began.
I also spoke about the importance of the 4140 level, adding: “Fail [4140] means today’s breakout also fails, and would trigger a sell down the levels to 4118-20 (and if bears are lucky for once, perhaps a multi-level move)” and we sold to ~4116 low of day. Despite the dip though, we have only retraced around 30% of last weeks rally. Is there more to come?
In today’s newsletter, I’ll be discussing this, re-iterating some of the techniques I used to stay long during the rally then recognize when it would end, as well as providing the actionable trade plan for tomorrow.