Major Breakdown For SPX, But Can Bears Run With It? April 25th Plan

For the last 7 trading days, ES has been stuck in an eerie state of “Deja Vu”, stuck in the same “extreme dip buy regime”, at the same levels, every day. It was 7 straight days where price on cue dipped into the 4130-40 zone, then was algorithmically bought typically back to the mid 4160s at least, and this general template has actually been the case for the entirety of April.

Today, the script changed. Why? Technical analysis 101: As readers know, ES had spent since April 14th or so building a sideways flag with 4133 support. I wrote yesterday: “The fail of the bull flag at 4133ish is the first warning shot that things may be unravelling and we could begin a hard rug pull down.” Rug pull down it certainly was, and both the 4129 and 4115 short triggers provided yesterday paid out.

Now what? In today’s newsletter I’ll talk about what this selloff means/targets, discuss how my trading system (reactive trading) allowed for the capture of todays sell, the talk the actionable trade plan for tomorrow.