4 Full Weeks Of "Buy-The-Dip" In SPX: More Ahead? Feb 6th Plan

Another FOMC week in the books and it certainly delivered the volatility. It was also one of the most technically important weeks in the past year, featuring a breakout, then back-test, of a 1+ year trendline at 4020, then 200 point rally. After clipping 4208 target yesterday though, it was time today for ES to correct and rest.

I wrote yesterday: “We have had a monster run and are likely in for some tactical/corrective trading now” adding “We have just had a vertical rally and therefore I expect more complex conditions tomorrow”. This was the majority of todays session. Traders were spoiled with big, clean trend moves for a week, and today was time for grinding, extremely choppy, corrective day. Big picture though, for 4 weeks now, every single dip was bought, if not within the day, then within a few.

Will it continue next week? In today’s newsletter, I’ll be addressing this & talking the must hold supports, talking my method of trading messy chop days like today, and providing the actionable trade plan for Monday.