Will Today's Dip Get Bought Yet Again? March 11 Plan
My newsletter yesterday was entitled: “Another Big All Time High For SPX, What Is The Target? March 8 plan”. The answer for today, as readers know, was 5190. I wrote yesterday: “My general lean is to defer to the trend as always. As long as 5133 can hold on dips (and ideally, 5155), we can flag out, then work back up to 5170, 5190+”, and we got there by 10am this morning, then dipped hard. Price action today could not have been cleaner.
The green this morning should not be overly shocking for readers, as ES has been locked in one of the most staggering cycles I have seen in many years. I have discussed this everyday now for a few weeks, but I will re-iterate. For the past 6 weeks in a row, like clockwork, we have seen parabolic Thursday and sometimes Friday moves. For the last three weeks in a row, it has even begun at the nearly exact same time (overnight Wednesday into Thursday), and the Thursday Friday period for the past three weeks have seen 165, 97, and 128+ point rallies respectively. After this, we have also seen what I have called “Hangover Monday and Tuesday” and ES has typically seen sloppy, corrective price action and typically red days after the late week euphoria.
After clipping today’s 5190 target essentially exactly, ES saw an afternoon dip. Will this get bought like the others, or is another “hangover Monday and Tuesday incoming”? In today’s newsletter, I’ll talk this, do a deep dive into the setup yesterday that caused the 128+ point squeeze we saw into today, then provide the actionable trade plan for Monday.