Will Bulls Buy The Post-FOMC Dip Again May 4th Plan

Today’s FOMC day delivered the typical FOMC complexity. I concluded yesterdays newsletter by writing: “My general lean on a normal day would be as long as 4133 holds, we can push back to 4155, then 4165-75 to back-test today’s breakdown” where I was looking for a dip. This tracked perfectly today.

We got an 11am sell down to 4133, followed by a squeeze to 4164, then the same rally occurred again after FOMC off 4133 right to that 4165-75 target which was the high of the day. As readers know, I got long at 4135 yesterday, to pre-position for the rally to 4165-75, with the objective being to not have to trade the random, algo-driven noise after.

However, bulls couldn’t hold the gains late day, despite 5+ attempts to bounce off the key 4130 level. Is “buy the dip” taking a breather? In today’s newsletter, I’ll be talking this, breaking down the setup that got me long for the 30+ point rally to 4165-68 target, then providing the actionable trade plan for tomorrow