Is the Trend In SPX Running Out Of Momentum? April 19th Plan

As readers know, I got long ~4150 yesterday as per the prior days plan, and this played out extremely well, running all the way to 4198 this morning before ES ran out of steam. I wrote in yesterdays newsletter that “4168-72 is a major level now” and this was certainly a core pivot for the last 24hrs. We tested 4172 overnight, squeezed 25 points, then sold back to 4168-72 which was the battleground all day.

Again today though, the dip was bought, and ES remains in the most aggressive possible dip buy regime since the March 13th low. In fact, since the March low, ES has not had more than 2 consecutive days where lower lows were set. Even single red days have been a rarity, with most intraday dips promptly bought up. Of course, this is not sustainable, and this steep dip buy regime will end with a deeper, more protracted, healthy pullback.

In todays newsletter, I’ll be talking about the big structures at play to trigger it, discussing my trade management strategy, then providing the actionable plan for tomorrow.