Is "Sell In May" Already Done? May 8th Plan
As readers know, I talked in yesterdays newsletter about ES put in my core trading pattern at 4070ish yesterday: The bullish failed breakdown, which setup a monster rally today. I wrote in yesterdays newsletter: “My loose lean is that 4086 reclaim is needed to trigger a relief rally to back-test those above mentioned levels at 4114 then 4135”.
This played out nicely and ES reclaimed 4086 overnight which ignited longs for the day. We ran to 4135 then spent much of the day there before ES decided to squeeze further. As I have written everyday since early March, ES has been in an extreme dip buy regime, and this took a big breather to start off May, with a 145 point sell this month - the deepest since the March low and this new bull cycle began.
Today though, it returned in force, and we are right back to where we spent most of April. Is the low in? In todays newsletter, I’ll discuss this, go into detail about the failed breakdown setup that triggered this run, then talk the actionable trade plan for Monday.