Historic Day for SPX and Week Just Starting: Jan 24/25 Chart and Trade Plan

Historic day today for ES: Todays complete melt down and recovery (4% down then back up) is historically extremely rare, happening only 2x since mid-1970s. While certainly a relief for bulls, little can be read into this - the last two times this happened were both in the midst of 2008s bear market. As I posted numerous times on Twitter (including Sunday) sharp sells typically see “face ripping” relief rallies and these types of recoveries happened in the middle of Feb 2020s collapse, as well as Feb 2018s collapse before the lows were lost or re-tested respectively.

In other words, bulls have more work to do. Fortunately though, despite the chaos today the levels respected extremely well: As posted last night loss of 4320-30 would trigger a “liquidation type scenario” likely down to 4215-4220 and 4220 clipped bounced to recover 4330. Would expect more wild swings for the rest of the week and focus will be on playing level reactions. Here’s what I’m looking for