SPX Is Basing For More Volatility. March 28th Plan
On Friday and into last nights futures open, ES put in a 90+ point vertical squeeze. It should come as no surprise what followed today then: ES spent the day ping ponging in a range between 4000 and 4035ish, cooling off and in the process, building energy for its next significant trend leg.
This lines up with what I wrote in Friday’s newsletter, where I stated: “I think we can push to 4020-30, probably dip and back-test more, then head to 4038-40”. Overnight Sunday, we ran to 4025, dipped to 4k, and that 4020-30 zone ended up being a major magnet for today’s session, with ES both starting the day there and ending the day there.
It is important to zoom out though and today’s chop will just setup the next tradeable trend leg. In todays newsletter, I’ll be talking core patterns driving this next leg as well as targets, talking how I traded today’s messy chop via my system, and then providing the actionable trade plan for tomorrow.