It's FOMC Week: Can SPX Bulls Keep The Rally Going? May 2nd Plan
As readers know, all my trading since early March has been driven by the technical reality that ES is in what I have called an extreme dip buy regime making our job fairly straight forward, with almost every day (and if not, every second day) featuring a lucrative dip buy. As mentioned in Thursdays newsletter, the dip buy zone for Friday was 4128-32, and we tested 4130 getting me long and squeezed 60 points
In Friday newsletter, I wrote, “My very loose lean though is that we can hold 4181, then push into the 4202-05, 4212 maximum zone and try a pullback”. This played out perfectly today, and we dipped to 4181 to the exact tick which was low of day, then rallied that resistance zone exactly, and pulled back. Of course though, a wrench is likely to get thrown into this simple trend this week.
Why? Because this is one of the most data heavy weeks of the year, with FOMC Wednesday, Apple earnings Thursday, then NFP Friday. Complex, trappy, tactical trading is ahead. In today’s newsletter, I’ll be breaking down the core pattern that will drive my trading this week, talking the setup that triggered this mornings long (the failed breakdown), then providing the actionable plan for tomorrow.