Huge Catalysts This Week For SPX. Can Bulls Keep The Rally Going? April 30 Plan
As readers recall, after the deepest sell in red-day terms since September 2022 to start the month off (6 red in a row), we capitulated on Friday April 19th and since then “buy the dip” has made a brief comeback as ES stages a relief rally, with all 7 or 8 dips since then being bought. Readers are well aware why this multi-day rally occurred, and on Sunday April 21st, I wrote: “5040-45 needs to reclaim now to open the possibility of a sustained, multi-day recovery”. We got this on last Monday, and ran 100+ points. After a total run of +132 points from last weeks low, ES took a breather today, putting in one of the slower days of the year
As readers know I longed the Friday close 5127, writing: “I am holding my 10% long runner over the weekend and have added to bring it back to 25% off the test of 5127 we just had, I have a massive embedded profit on this and very low cost”. We managed to get to ~5155 today before ES ran out of steam and began consolidation. While today was slow, it won’t last we have ahead of us now what may be one of the more complex weeks of the year. Not only do we have FOMC on Wednesday (notoriously the most volatile days of the year in ES), but it is sandwiched between Amazon earnings tomorrow, and Apple earnings Thursday.
Readers recall last week just how impactful these tech earnings are on ES. Can bulls keep “buy the dip” going? In today’s newsletter I’ll talk this, do a deep dive into setup that caused this most recent squeeze leg (it is a variant of my core setup) then discuss the actionable trade plan for tomorrow.