Will Today's Dip In SPX Be Bought? March 8th Plan
My newsletter yesterday was entitled “Is the SPX Rally Running Out of Steam?” and with a little help from Powell at 10am (the driving catalyst today), the answer was “yes”, triggering a 60 point fairly clean sell and the type of one directional volatility we typically only see associated with either Powell or core data releases.
I wrote yesterday that the 4040 failure would trigger the bear case & shorts on the day to 4015-20, then 3995 and we got to 3995 late afternoon. This was the largest sell in two weeks, but it was ultimately the same story as for the last 10 months: Big moves to go nowhere, and we are the same price we spent the entire last week of February, as well as plenty of time in November, December, and January ~4k. It’s a traders market.
Shorter-term though, ES put in a critical bottoming pattern last Thursday/Friday as posted, triggering a 160 point squeeze. Is it now in jeopardy? In today’s newsletter, I’ll be addressing that, talking the important big picture context here, then providing the actionable trade plan for tomorrow.