Extreme Short Squeeze Day #2. Danger Ahead For SPX? May 1st Plan

NOTE: This is a re-send of the newsletter for Monday May 1st, originally sent out on Friday, for those who did not receive.

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