The Dip Was Again Bought In SPX, How Much Higher Now? March 27th Plan

I concluded yesterdays newsletter with the following: “My general lean is that as long as [3950-55] continues holding (spike down to 3935-40 and rapid recovery being the lowest), that we can revisit 4k+”. This played out extremely well on Friday. We sold hard Thursday overnight to 3937 to set the low of day, then began a 60+ point rally to 4k+ target.

The support zone we rallied out of was highlighted by a blue box in the chart in my last newsletter, and it is no coincidence we rallied 60+ points out of it. This area is support of a textbook rising channel from the March lows, and I wrote in last newsletter that as long as it holds, the uptrend remains in tact. This once again shows the power of simple charting techniques and little more than trendlines and channels are needed to determine key reversal spots.

But what now? and can this strength continue? In today’s newsletter, I’ll be talking about a large 1 month pattern that is forming here and its targets, going over my core trading setup and how it helped find an entry for Friday’s rally, and go over my actionable trade plan for Monday.