We Just Had The Largest Single Day Squeeze of 2024 In SPX. How Much Is Left? Feb 23 Plan
My newsletter yesterday (sent out at 320PM in preparation for Nvidia earnings) was entitled: “Three Red Days In A Row For SPX For Second Time in 2024. Is It Time For A Bounce? Feb 22 Plan”. ES answered that with a resounding yes, and within 20 minutes of the newsletter being sent out, not only did a bounce start, but a historic bounce started where ES ran 145+ points in the span of 23hrs, most of which occurred last evening/overnight. All year, every 2-3 day dip has been bought, and this dip was bought with a ferocity that overshadowed any of the priors.
While the speed of the move was unusual, the technical setup wasn’t and late yesterday afternoon, we got my core setup: The failed breakdown, which triggered longs for the move. I wrote yesterday: “One could long above 4971 which was the cluster of lows from yesterday we broke down late day today (perhaps 4973 entry)”. This 4973 entry played out far better than anyone could have expected, triggering what turned into a 145+ point long into today. The final line of my newsletter yesterday was: “Reclaim of the 4970-76 zone should start us on a squeeze higher”, and this squeeze has been my best trade of 2024 by a very significant margin.
On this, we have made yet another fresh all time high in ES for the year, the second this year. We are also - however, right at major bull market channel resistance now at 5105. In today’s newsletter I’ll talk what to look for here, I’ll then do a deep dive into the setup that caused this squeeze yesterday (its my core setup), provided in advance. I’ll conclude by discussing the actionable trade plan for Friday.