Will Dip Buyers Step Back In For SPX? April 6th Plan
After a nearly 200 point clean rally where ES did not have a greater than 30 point dip in six days, ES continues did was healthy price does: Entered into corrective/consolidative mode, pulling back 70 points and retracing 40% of the move. I warned beginning last Friday to not expect clean trend this week but rather choppy, complex, difficult action and that has been this week. This should continue.
In yesterdays newsletter, I concluded by writing: “Tomorrow we could see something like test 4140, pullback (perhaps to even test 4100-90), then pop”. This tracked very well - we popped to 4135, sold down to 4099 into support, then rallied. This 4090-4100 zone was no coincidence, being the first major back-test zone from last weeks break-out as discussed yesterday.
With ES now retracing 75 points and the RSI oversold again, is that it? In today’s newsletter, I’ll be addressing this and talking breakdown triggers if we keep selling, going over failed breakdowns, and then discussing the actionable trade plan for tomorrow.