The Dip Was Bought Again In SPX. Is The Bottom Already In? July 7th Plan

Yesterday, my newsletter was entitled “SPX Is Building Energy For Its Next Move. What Way?”. We certainly got some today and it was to the downside at 1st with ES putting in its biggest dip since April 23rd, which was then (as always) promptly bought. As readers recall, ES spent the last three days building a flag pattern with 4464 support. This pattern failed this AM, triggering the 1st short in over a week.

I wrote in yesterdays newsletter: “The bear case would begin if the bull flag fails which would require a failure of the 4467 level…one could try the short perhaps 4465” We sold to 4420 where we set a low, and this zone was no coincidence. Technical analysis 101: We broke out this zone last Thursday triggering a 90+ point squeeze, and today we back-tested. I wrote yesterday: “We could sell to 4420-25 and it would would merely be the first major back-test, and likely a good buy zone.” 4420 was the low of the day exactly and represented a fantastic buy opportunity.

Now what? In today’s newsletter I’ll address this, then I’ll breakdown some of the excellent trades today (all fully provided in yesterdays newsletter) and provide the actionable trade plan for tomorrow.