Can SPX Make A Fresh New High Next Week? April 7th/10th Plan
NOTE: This is a re-send of the newsletter for Monday April 10th. It was originally sent out Thursday evening.
There has been one over-riding theme in ES since the March 13th low, but even more broadly since October: Buy dips, and while the size of the dips vary, there has been an underlying bid in ES for months reflected by the higher lows and higher highs being set since March and broadly since October. This has driven my trading.
Today played out perfectly. I wrote in my last newsletter: “My lean remains unchanged, as long as 4100-90 holds, we can work up the levels, something like pop to 4127, 4135, dip, then perhaps 4148 after”. We started the day with a sell down to 4100-4090 support (4096 low) then put in a clean rally up the levels to 4135. As long-time readers know, this rally was fairly easy to catch being setup by a textbook failed breakdown (my core pattern). While this was a good rally, can it continue to further upside targets?
In today’s newsletter, I’ll be doing a break-down of my core trading pattern, the failed breakdown, with accompanied images. I’ll then talk the path into next week/targets, as well as provide the actionable trade plan.