Buy The Dip Makes A (Brief) Comeback In SPX. More Ahead? Oct 6th Plan
As I’ve spoken about on here extensively September is the ugliest month of the year seasonally (played out) but fortunately for bulls October is on average much stronger. During typical years, it is the 4th most strongest month of the year, but over mid-term years since 1950, it is the strongest. This seasonal dynamic applied last year (where ES literally bottomed the last day of September and started a two month rally October 1st) and so far, this year is tracking.
This week I was looking for a relief leg to start from 3575, and we clipped it Sunday eve, starting the rally. Today, the 1st dip of this relief leg was bought. I wrote in my last newsletter that I’d be looking to buy the 3745 zone today if price decided to dip there direct today -for continuation of this rally leg - and this played out nicely for 50+ points.
With a dip being bought today and major reversal setup on the daily chart (loss and recovery of Junes low) bulls do have the setup to run more. But can they despite the broader bear market? In today’s newsletter I’ll be talking upside targets, downside triggers if they drop the ball, and actionable plan tomorrow.