SPX Is On The Edge Of A Major Breakout. May 29th/30th Plan

Yesterdays trade plan could not have played out more perfectly. I wrote in Thursday’s newsletter: “My general lean is we can fill this out (ideally bulls want to hold above that 4147 zone), then try the push higher to 4190+”. We dipped to 4146 which was the major low shortly after I sent the newsletter out, then got the push higher to 4190+.

As readers know, I had been positioned long since the 4135 entry provided in Tuesdays newsletter and this turned into a rare multi-day “swing” run and one of the best trades of 2023. I wrote yesterday “the driving theme since October has been dips are bought. Sometimes they are larger, sometimes smaller, but they are bought” and this certainly was the case yet again.

Today we re-tested the stubborn 4200s area that has capped price since April. Can it finally clear? In todays newsletter I’ll be addressing this, then I’ll be talking about my system for trailing stops (what kept me long all week) and then providing the actionable trade plan for Monday/Tuesday next week.