Extreme Short Squeeze Day #2. Danger Ahead For SPX? May 1st Plan
It’s probably getting boring for traders by now me saying it (though very lucrative), but as I have said everyday since March, ES remains in a dip buy regime until proven otherwise, and this same was true today with a dip in the morning then major squeeze.
After a extraordinary one directional trend day Thursday off 4072 support, I was looking for another dip to buy today, concluding my last newsletter (sent out when ES was 4166 Thursday) by writing: “The core thing for bulls will be what the first pullback looks like. My loose lean though is that we can backtest 4128-32 (4118 lowest) hold, then try to work up the levels. Bulls firmly in control above there.” This played out perfectly, and we dipped from 4166, right into that 4128-32 support, then squeezed 60+ points up the levels
We rallied 120points from yesterdays low to today’s high, but where is this leg ultimately targeting? In today’s newsletter I’ll address this + the core pattern driving it, I’ll also be talking the failed breakdown setup that triggered today’s big squeeze, and providing the actionable trade plan for Monday