Can Bears Keep Yesterdays Big FOMC Breakdown Going? Sept 23rd Plan

Yesterday was a *massively* volatile FOMC day featuring a big initial squeeze higher of 90 points to trap longs, followed by a 155 point leg down. While overnight sessions are usually quiet, because of FOMC yesterday the volatility continued afterhours. I wrote in yesterdays newsletter: “My general lean is that we test 3775 zone, try a bounce back up the levels (3835 would be the highest bears want to see), then continue back down”. This played out perfectly - we tested 3770, rallied to 3833, then sold off back to 3770-80 where we spent nearly the entire day.

Yesterday was significant from a technical analysis perspective because - as shared in prior newsletters - we broke down a multi-week falling wedge pattern after FOMC yesterday at 3825-35. This is a classic trigger for a fresh trend leg down, but so far follow through has struggled.

In today’s newsletter, I’ll be talking how I traded today via yesterdays plan (including 1 clean example today of my core trading setup), talk what the triggers are for bulls to put in a low here, then discuss what my plan is for tomorrow