Good morning, traders…
Early last week, the market internals looked strong — plenty of momentum, solid breadth, and the kind of setups that typically point toward more upside.
Then Monday morning hit.
Yesterday’s open was a disaster. A hard gap down that caught a lot of traders flat-footed and ruined any calls held over the weekend.
But it didn’t stay that way.By late morning, the price started reversing to the upside. The S&P 500 found its footing, ran all day, and closed green. If you were quick-thinking and bold, the intraday trend was there for the taking:
It was a remarkable move from red to green — and a reminder that this market still has incredible opportunities … they’re just not coming gift-wrapped.
If you weren’t ready for yesterday’s intraday move higher, that’s okay. Most people weren’t.
This is the kind of tape that rewards preparation and punishes hesitation. The setups are there — but you have to be ready to spot them early and trust your read when it counts.
With that in mind, let’s break down how to catch these moves — and how to crush them when they show up.
What The Market is Telling Us
There are technical levels that matter, and there are signals worth watching. They just aren’t acting the way we want.
Case in point: I was watching 5550 on the S&P 500 last week. Looked like a level that could hold and lead to a new leg up.
Instead, we opened Monday under that level — hit 5470 before bouncing — and had to scrap the original plan.
Sure, it was sort of annoying. But was it tradeable? Definitely — if you had the discipline to shift with the tape and not just cling to the setup you were hoping for.
The market isn’t interested in your forecast. It’s not looking for agreement. It’s just moving. And sometimes, all you can do is stay out of its way until it gives you a reason to step in.
The Ugly Open Wasn’t Random
Three things triggered Monday’s chaos:
- Volatility (VIX) gapped up. When the VIX (CBOE Volatility Index) spikes, expect pressure. That’s basic — but still catches people off guard. The market reacts to volatility like your dog reacts to fireworks: fast, panicked, and messy.
- Quarter-end cleanup. Fund managers wrapped up Q1 by rebalancing, locking in profits, and adjusting risk. These flows often override clean technical setups, at least temporarily.
- April 2 tariff fears. Global headlines can be noise — until they’re not. With new tariffs looming, money managers are bracing for headline risk, which means more selling than makes sense if you’re only looking at charts.
Put all of that together and you get a nasty gap down… followed by a beautiful bounce (once the market sniffed out the overreaction).
That was a major opportunity — if you were calm enough to catch it.
This Market Builds Winning Traders
When things get unpredictable, I always go back to a lesson I learned playing ball in high school.
There was a gym across town that had a reputation: no fouls, no soft calls, and nobody taking it easy.
My dad told me, “Son, if you want to get better, go where the game’s harder.”
So I did. I played with kids who needed the game, not just wanted it.
Those were the games that turned me from a mediocre player into the sort of athlete who gets offered full-ride scholarships to university.
And this is that kind of market — where you can graduate to a new level.
It’s physical. It’s inconsistent. It messes with your head. But every time you show up, you get better — if you’re willing to treat the pain points as reps, not roadblocks.
3 Tips for This Week
1. Tighten Up Your Timeframes
This isn’t the week to swing for fences. With the VIX over 20, premium gets inflated fast. Stick to trades that can play out within a few candles or a single session. Quick in, quick out.
2. Stay in Cash Until the Setup Is Clean
Flat is a position. One of the best, honestly. The longer you’ve been trading, the more you respect the power of not trading when there’s nothing obvious to do. No great OMEN Scanner setups? No reason to trade.
3. Trade Small So You Can Think Big
When things get messy, size kills. Reduce your position so you can actually think straight. Capital preservation is underrated — until it’s gone.
Later in the week, we have PMI, jobless claims, and non-farm payrolls lined up, and they’re all capable of throwing more confusion into the mix.
But volatility isn’t the enemy. It’s just movement.
And with the right approach, movement creates opportunity.
Happy trading,
Ben Sturgill
P.S. Last earnings season, we had 100 winning trades in a row* in Earnings Edge — don’t miss the next 100…
Join the great Danny Phee for LIVE EARNINGS WORKSHOP — This WEDNESDAY, April 3 at 4:00 p.m. EST.
Space is limited — Click here to reserve your seat!
*Past performance does not indicate future results
