6 Days Of Dip Non-Stop Dip Buy, Can SPX Manage 7? April 4th Plan
I concluded my last newsletter on Friday by writing: “Generally, as long as we remain above [4120-26], I think we can test the 4160-65 zone which is resistance of the yellow channel, and next spot at a pullback is there”. This played out nicely today; we tested ~4126 overnight and into the morning, rallied to 4158, then saw a dip. Like every dip for one week now though, this dip was bought again.
Today was largely a consolidation day as ES opts to cool-off after a full week of the most relentless possible form of rally. In the past week, there have only been 4 dips, most around ~20 points, with the “largest” being today’s 30 point dip. All were promptly within an hour or two and there have only been 5 red 4hr candles in the past week.
Of course, this pace can’t continue forever, and I do expect choppier/corrective trading this week as written on Friday. In today’s newsletter, I’ll be talking more about this/targets, providing an outline on how to trade continuation patterns (one of which setup this mornings), then provide the actionable trade plan for tomorrow.