All Time Highs Coming For SPX? Not Quite Yet. March 25th Chart and Plan

Today, we witnessed yet another example of the most powerful trading setup there is - the fake breakdown. As I wrote the past few days, 4460-70 was key support and this also happens to be the 200dma. In yesterdays letter I wrote: “This means that tomorrow, any recapture of 4460 (ideally if you really want to be secure 4470) would be the trigger for the next leg higher. If tomorrow morning after 8am we are above 4460-70, it will be a day of longs with 4495, 4513, 4535, 4560 resistances”

What happened? We dipped below 4460 slightly in the morning (the fake breakdown) reclaimed, and it triggered a very nice day of longs. In today’s letter, I am going to breakdown this setup a little more. I will then discuss what I see going forward into May. While there many multiple bullish higher time frame setups have triggered, there are some big hurdles overhead.