Is Buy The Dip Taking A Breather In SPX? May 5th Plan
Back on Monday, I wrote: “FOMC Wednesday, Apple earnings Thursday, then NFP Friday. Complex, trappy, tactical trading is ahead” and this weeks trading has certainly fit the bill, and tomorrow will be no different with two 80+ point sells and two 40-60 point short squeezes week-to-date, and plenty of chop today.
In yesterdays newsletter, I wrote: “Bear case tomorrow: Short-term, begins on the fail of the 4107-4110, 4099 support cluster”. We cracked this late day yesterday, and after a failed attempt overnight to recover, triggered 40 points of selling to start the day to 4060 support before a nice late day squeeze. One thing is clear though this week - there has been a character change - from the “extreme dip buy” regime of April, to one where dip buying is delayed and bounces are sold.
Is buy the dip taking a breather? In today’s newsletter, I’ll be breaking down the core patterns at play here, talking how I traded last 24hrs action via my system, and then provide the actionable trade plan for tomorrow.