The SPX Breakout Continues, What Is The Next Target? March 31st Plan
As readers know, I got long at 3985 on Tuesday, and I have been holding a runner since, writing yesterday: “We have had a major squeeze and I am still just riding my long runner now”, adding “During trendy moves, inactivity and sitting on a position is a traders best friend”. This rally shows the combined power of 1) The failed breakdown setup. It was the flush below 4000 on Tuesday, bear trap, then recovered that triggered this move and 2) Using runner in a trade management system, and the combination of those allowed the partial-size capture of a 100+ point move in two days. More detail below.
We have now, however, rallied 107 points in the span of 2 days, with only one 20 point dip today that was instantly bought up. This continues the buy dips trend I have discussed all month, and since the March 13th low, every single dip was bought within a day, and there has not be more than one consecutive red days. This is obviously not sustainable, but still likely has some energy left.
How far until the next major resistance? In today’s newsletter, I’ll be talking targets from here as well as sell triggers, talking the failed break-down setup + screenshot from todays chart (which triggered a nice intraday long today) then talking the actionable trade plan for tomorrow.