Was Today's Micro Dip All SPX Will Get? March 14 Plan
Yesterday, the streak in ES continued. By streak, I am of course referring to the relentless, programmatic dip buying that has occurred on scheduled intervals, since January 4th of this year. I have discussed this at length, but for three months now, every single two day dip in ES has been bought (there have been 7 of them, and ES has not seen a 3 red day stretch since Jan 4th). The last two red day dip concluded on Monday. I concluded my Monday newsletter by writing: “Will these two red days get bought like the others?”, and the answer was yes.
After yesterdays CPI excitement though where we ping ponged in a 60 point range before closing at the highs (dream day traders market), today started off much more muted. This is not a surprise, but rather expected and normal price action after a wide range, trendy session. I noted this yesterday by writing: “There is a high risk of choppy price discovery as the market digests the leg” and we spent most of the session stuck in a 10 point range, digesting yesterdays rally. Before a late day flush, that was yet again bought. I wrote yesterday: “5221 is below there. This is also fairly used up after today, but one could also try this or wait for it to fail to 5218 then reclaim” and we sold to 5218 low of day and bounced.
Was that it for the dip? In todays newsletter I’ll talk this, I’ll then go into detail about an important variation of my core trading setup (the failed breakdown), one which featured heavily yesterday on CPI day, and originally got me long at 5181 for the rally, as provided here. Finally, I’ll discuss the actionable trade plan for tomorrow.