The Breakout Started In SPX, But When Is 1st Pullback? April 3rd Plan

This week presented one of the best trades of 2023, in terms of being a clean, minimal drawdown 150+ point rally from Tuesdays 3980 low. As readers know, I have been long since 3985 on Tuesday and holding a runner, adding longs dynamically when we get my core setup: The failed break-down.

As readers know, we got one Thursday late afternoon, getting me long at 4071ish for Friday’s 60+ point rally. I wrote Thursday: “My loose lean from here is that we can continue basing in the 4070 to 4085 range, then push up to 4098-4103, next possible pullback zone, then ultimately on to 4120” This played out perfectly and we pushed to 4098 Friday morning, then onto 4120 and beyond.

This rally though has been extreme, with only one, 20 point pullback, making the RSI is now the most overbought in 2023. In today’s newsletter, I am going to talk pullback spots, going to summarize some of the simple/core technical analysis concepts that I have discussed all week which setup which allowed me to catch this rally, then discuss the actionable trade plan for Monday.