Big Volatility To Go Nowhere, What Way Will SPX Break? March 24th Plan
I concluded yesterdays newsletter by writing that post-FOMC days are often as volatile as FOMC days themselves and today certainly delivered. The day started with a 50 point squeeze, and I wrote yesterday afternoon: “I consider this dip to be corrective still for a bounce back to 4020-25 then ultimately beyond. If we can reclaim 3980ish we can start there direct”. This played out nicely to start the day and we got the squeeze to 4020-25, over extended to 4038, then began a hard sell, then a late day rally.
In todays session alone, we rallied 50 points, sold 90 points, then rallied 45 late day and sold again. As I always write, it is not “bulls”, or “bears”, or “forecasters” that make money intraday, but those who can trade flexibly level-to-level, armed with a collection of setups, and disciplined trade management process. Despite the huge volatility though, we are quite literally unchanged from where we started the session today.
Since the March low, all dips have been bought, forming a series of higher lows. Can it continue to make another high? In today’s newsletter I’ll address this, talk how I traded today’s wild action via yesterdays plan, then provide the actionable trade plan for tomorrow.