The Dip Was Again Bought In SPX, New Highs Incoming? July 10th Plan
As readers recall, I had been waiting to buy the 4420 level, and we hit it Thursday, and squeezed. This was technical analysis 101 as I often state: Last Thursday, we broke out 4420 triggering a 70 point squeeze. What always happens after a breakout? We back-test and rally again.
We saw fantastic continuation off 4420 today. I wrote yesterday: “My general lean is ES base builds under 4450, then goes to retest 4467-72. Dip again likely there” This played out with complete perfection, as we based under 4450 all morning, then ran to 4467-72 target, then dipped.
We broke out 4420 last week, rallied, then backtested this week. Does this mean its “all clear?” for new highs? Not quite yet. In today’s newsletter I’ll talk this, I’ll then break down in further detail the setups that triggered yesterdays short then the 50+ point long off 4420. I’ll then provide the actionable trade plan for Monday.