Can NFP Tomorrow Finally Break SPX From Its Range? Jan 6th Plan
I wrote in yesterdays newsletter: “For now, everything between 3820-25 support and 3895 resistance is random, choppy, trap filled noise”. The majority of today’s price action certainly verified this yet again, and its no coincidence where we bounced hard today: Right at 3820-25, twice.
Since Monday December 19th, we have now bounced 9x off this 3820 zone (either directly or after a brief bear trap undercut below) and this 3820-3895 chop zone is one of the longest, tightest consolidations in years. The move out of it is certain to be significant, but until then this is a tactical, level to level day traders market.
FOMC minutes yesterday could not break this out. Next up is the NFP report at 8:30AM tomorrow which is a very likely breakout candidate - if that fails, it will be CPI next week. In today’s newsletter, I’ll be talking about my trade management methodology for trading this chop, trading around data like NFP, as well as the actionable trade plan I am using to trade tomorrows session.