Is SPX On The Verge Of Another Big All Time High? March 13 Plan
My newsletter yesterday was entitled, “CPI Incoming For SPX - Expect Volatility” and we certainly got some. I discussed at length, my system for trading CPI days, but as readers know, CPI days (which are not so different than any day) are all about trapping, and to profit, one has to trade the traps, rather than get victimized by them.
Today, this approach played out perfectly. With regards to how I was looking to trade today, I wrote yesterday: “ 5181 is first down…..If we can lose it down to 5176 or lower though, then reclaim, it may be attractive for a level to level move”. Right after CPI, we got exactly this trap, and we dipped to 5176 low of date, reclaimed 5181, and rallied. I concluded my newsletter yesterday by adding “As long as 5181, 5168 holds on any dips down, we can work up to targets which are 5203, 5220+” and after a second dip to 5181 ~10am we squeezed to 5220+ daily target.
Today also saw the continuation of another pattern I have discussed extensively for weeks. Namely, since January 4th, every single two red day dip in ES has been bought, typically to a new high. There have been 7 of them, and yesterday was the most recent. Like the others, it was also bought, and the cycle continues. Will this see a new high as well? In today’s newsletter I’ll talk this, I’ll discuss the setup we saw yesterday that caused this squeeze into today/got me long originally (its the same setup that causes every squeeze). Finally, I’ll discuss the actionable trade plan for tomorrow.