The Dip Was Bought Yet Again In ES. Breakout Time? April 18th Plan
I concluded Friday’s newsletter by writing: “We remain stuck in a brutal chop range which everything 4180-4112 being complete noise now. In this range is sub-par trading conditions”. The first half of the day certainly fit the bill, chopping slowly and grinding down, before a huge late afternoon squeeze. Traders know the drill by now though, and once again - as it has every day or two since March 13th - the dip was bought.
I wrote on Friday: “My general lean though is that we can spend more time chopping between mid 4140s and 4170 (perhaps test 4142-48 again, bounce etc) then try another shot at 4181”. This is precisely what today looked like, as we spent the day chopping between mid 4140s and 4170, before dropping to 4148 low of day to the exact tick then rallying hard out of that. We are once again approach the breakout resistance.
As readers well know though, consolidations precede trend moves, and ES is likely setting up for a big late April break. In todays newsletter I’ll be talking about this, discussing how I traded today’s todays action via the last newsletters plan, then providing the actionable trade plan for tomorrow.