Will Today's Dip In SPX Get Bought Like All The Others? May 30 Plan

We are coming into the final days of May, and its been a historic month. The month began with ES breaking out a month long bull flag on May 6th (which formed for the entire month of April). This commenced a 10 green day in a row stretch, something we have not seen since October 2021, and something we are unlikely to see again probably for a couple years.

For the duration of May, “buy the dip” has therefore been the overwhelming theme. While ES has put in a handful of sells, they typically have been bought within a day maximum, with the largest sell being last Thursday - a 92 point, 4 hour dip to 5272 - which was also bought. Overnight last night/into this morning, ES put in another dip, the second largest in May so far. I wrote yesterday: “Bear case tomorrow: Begins on the fail of 5302….I’d want to see 5302 tested again, and ideally a bounce here or failed breakdown first that is actionable on the long side (a failed breakdown of today’s low would be particularly good to see). This reduces the odds of getting trapped. After this, I’d be looking short perhaps 5297”. We saw a nice, albeit very slow dip off this short trigger, to close at the lows.

Will this dip/red day in ES get bought within a day like every other dip has this month?In today’s newsletter I’ll talk this, I’ll go over an interesting but powerful variant of my core setup (the failed breakdown) which caused the violent late day squeeze we had yesterday. Finally, I’ll discuss the actionable trade plan for tomorrow.