Did SPX Put In A Bottoming Setup? March 3rd Plan

My newsletter yesterday, I wrote extensively about the 3948-50 zone in ES, writing that we had seen 5 bounces off that zone yesterday alone, and its no coincidence where we yet again spent half the day today: Right around 3950. Overnight, it lost, triggering shorts to 3925 target/bounce zone, before springing right back and reclaiming 3950, putting in a major failed breakdown bottoming setup.

This 3950 zone is the most important technical level for ES, being the back-test of the core bear market trendline from January 2022, which broke out this January 2023. ES certainly agrees, spending the last week at this zone, before trying to break it down last night, and failing. What happens here likely determines the next few weeks/months.

In today’s newsletter, I’ll be talking what today’s overnight breakdown and today’s recovery means, discussing my core trading setup which allowed entry into today’s rally, then discussing the actionable trade plan for tomorrow.