Calm Before The Storm For SPX? Dec 9th Plan
After a slow day of chop yesterday with price playing ping pong between 3920-3960 all day, patient traders were “rewarded” today with a slow trend day to the upside. In yesterdays newsletter I wrote: “My general lean is that we can try to re-test 3955-60, perhaps dip again, then try to run up” with 3975, 3990 being targets. This played out, and we popped to 3955-60 in the morning, dipped again, then got the run to 3975.
Despite this though, price action has obviously slowed down considerably from the big volatility we had earlier in the week, and the reason is clear as stated yesterday: Next week is one of the most catalyst rich weeks of the year with CPI, FOMC, and Quad Witching all in the same week. In addition to this, tomorrow morning is PPI release. With massive catalysts on the horizon, ES simply in no rush to get caught overly overside either way.
The coming days will involve high complexity, tactical day trading. In today’s newsletter, I’ll talk the broad driving pattern, how I traded todays action via yesterdays plan, and the actionable plan for tomorrow.