4 Red Days For The 1st Time In 2024. Bounce Time? April 18 Plan
Today was a dream market for level to level traders. This week started off with a bang in ES and Monday saw the continuation of Friday’s deep leg lower, with those two days cumulatively being the largest two back-to-back red days since the January 3rd dip we started the year off with. After this pullback, yesterday was a “rest day” where we spent the session building a very choppy base between 5082 and 5115 largely, testing 5082 over 6 times.
Today, after spending more time ping ponging in that range to start, we cracked it to the downside, and the “rest” ended, with ES seeing another flush lower. I wroteyesterday: “Bear case tomorrow: .. 5082 failure is the big warning shot..5046-51 would be the target for this, where I’d likely exit runners". This short played out nicely, and we sold down to 5046-51 sell target by 1pm today.
After we hit this sell target, the dip was bought. I wrote yesterday: “5045-50: Back-test of the major green triangle pattern shown below, that we broke out way back on Feb 22nd. This is a massive support and high confidence long zone if we get there.” We clipped this on the sell, and squeezed vertically for a 50 point long. Despite this, ES has still put in 4 red days in a row, for the first time for the first time this year. Can it bounce? In today’s newsletter I’ll talk this, discuss the setup yesterday that caused this recent flush down, then provide the actionable trade plan for tomorrow.