First Red Week For SPX In 5 Weeks. Another One Incoming? Feb 17th Plan

I have started every single newsletter since January 19th with the same theme: On that day, something very significant happened. Namely, we broke out of a month long, bullish inverse head and shoulders pattern. This commenced what I have - daily - called “buy every dip mode”. Buy every dip mode was tested this week to the largest degree in 2024, with ES putting in a sharp, 130 point selloff Monday-Tuesday.

“Buy every dip mode” passed this test with flying colors, and in the span of a mere two days reversed nearly 100% of that selloff, taking ES only a few points off from the prior all time high set on Monday. As readers recall, I have been long for the majority of this rally, with the most recent entry yesterday ~5020, and I wrote yesterday: “I am holding my 10% long runner still from ~5020 today, and will be holding it into tomorrow and just letting this work”. This played out well into the overnight session, running to 5057 and dipping and beginning what would be a standard choppy OPEX day. I added yesterday: “Obviously bulls remain firmly in control and it would take a move below this weeks low to even begin changing that. Short-term for tomorrow though, 5018 is key.” 5018 remained the key pivot today, and we tested it this morning, flushed it quickly, rallied back to 5050s, then returned to the magnet into the close.

Today, ES closed at the lows finally, which has been a rare occurrence recently. Will it get bought up again Monday as usual? In today’s newsletter I’ll talk this, I’ll then go into detail on my trailing stop methodology (the one that has ultimately kept me long from Wednesday 4990 until today). I’ll then discuss the actionable trade plan for Monday/Tuesday