After 3 Red Weeks, SPX Goes Green Week. Another Incoming? April 29 Plan
This week has certainly been a character change from last week. Recall where we were one week ago: ES had just put in 3 red weeks in a row, something it had not done since September 2023. It also put in 6 red days in a row, something it had not done since September 2022. It should be no large shock then, that we started this week with a large, 130+ point leg higher.
One week ago, last Friday, I spoke about what the trigger was for beginning this leg up, writing: “5044: The most important level in ES now. This needs to reclaim now to open the possibility of a sustained, multi-day recovery”. On Monday, we got this, and the leg up began. It continued into today and as readers know, I sent out yesterdays newsletter early at 3:20PM before earnings, indicating I was long. I concluded that newsletter by writing: “My general lean is as long as we are above that 5036-33 zone, the relief rally is still in tact. This would target 5108, 5126 again. Likely dip, then on to 5145-50”. This played out perfectly today and we rallied to 5145-50 target precisely, then dipped.
We have therefore broken the 3 red week streak, and for the entire duration of this week, dips were bought again. One green week though, does not make a trend change. Can we manage another? In today’s newsletter I’ll talk this. I’ll then discuss the setup that got me long yesterday for the post-earnings move (this is a very important setup to understand, as it “causes” most short squeezes). Finally, I’ll discuss the actionable trade plan for tomorrow.