Biggest Green Day Stretch Since November 2024 For SPX. Pullback Coming? April 29 Plan

Today ES managed to do something it had not done since November 2024: Put in 5 green days in a row and this was the largest green day stretch since the 1000 point collapse that began on March 25th. Readers know though that this rally was not surprising because since the April 6th low set at 5485, ES had been in what I call “buy dips mode” where every dip has been an actionable long.

We had 430 point sell on April 9th, 375 point sell on April 10th, 130 point sell on April 11th, 233 point sell April 16th, and 56 point sell April 17th, last Monday a 177 point sell, last Wednesday a 141 point sell, and last Thursday a 67 point sell. They were all bought up. As I mentioned in my last newsletter intro though, saying “buy dips” is not useful because the big question is always “where?”. The answer, is simple. Dip buys and short squeezes are *all* caused by my core setup: The Failed Breakdown, whereby price flushes a low, traps shorts, institutions get long, the low recovers, and then we squeeze. Every one of the above dip buys occurred on a Failed Breakdown.

This was true for Friday’s long as well. I wrote on Thursday in my newsletter at 3pm: “5493 is first support down as of writing….I’d want to see it flush to 5485 or lower and recover.” After selling from 5540s Thursday evening, on Friday morning at 10:30AM ES saw exactly this, and we flushed 5493 down to 5481, recovered it (Failed Breakdown) and rallied all day. I also wrote on Thursday: “My general lean is to defer to the trend. Bulls want to retrace some of this sell to the supports mentioned above [5493 was 1st down]. Next leg up sees 5515, 5532, then 5565-75.” By this morning, we tagged 5565-75 and began a dip.

Today, the task would be for bulls to buy the dip again and I wrote on Friday at 4pm: “As long as the above supports hold (5492-85 lowest), 5565, 5582, then 5620-25 are next batch of targets.” They bought the dip right on cue and we hit 5492 exact low of day, and squeezed back to 5565+.

Can bulls manage 6 green? In today’s newsletter I’ll talk this, I’ll do a deep dive into the Failed Breakdowns we had last Thursday and Friday which cumulatively produced nearly 250 points of upside (and all provided to readers in advance). Finally, I’ll discuss the actionable trade plan for tomorrow.