Major Volatility Incoming This Week In SPX, What Way? April 11th Plan

After a very nice rally on the Friday jobs report, ES came back from the 3 day weekend and decided to put in a good dip to 4098 support to cool-off. Like all dips since March, this one was unsurprisingly bought up, as we remain in an uptrend.

In my last newsletter Thursday, I wrote: “As long as 4118 keeps holding, I’d like to see something like pop to 4142-48, perhaps dip again to play more inside the the 4100-4140 zone, then attempt the break to 4165, 4180”. This played out perfectly. After jobs report on Friday we rallied to 4146 target, sold back to 4100, then rallied again 40 points. We continue to build a 10 day base largely between 4100-4140s, as ES resets after the 190 point rally from March 16th

This is setting up a significant, multi-day move, and there is no shortage of catalysts this week with CPI and FOMC minutes Wednesday, then PPI on Thursday. The question is, what way? In today’s newsletter, I’ll be breaking this down, talking to my approach to trading the upcoming high complexity action, then providing the actionable trade plan for tomorrow.