Consolidation Day For SPX but Big Wednesday Incoming. November 30th Plan
After yesterdays clean sell day, today was a day of pure chop with price glued to the 3960 level all day. It trapped bulls above it, trapped bears below it, and ultimately ended the day unchanged. This action likely seems familiar to some as it is exactly what price did Nov 17th to Nov 22nd - at the exact same spot - before breaking to the upside 100 points in that case.
Today’s chop is no coincidence though. Tomorrow is a catalyst heavy day and as is common before catalyst heavy days, the market was in waiting mode. Not only are there numerous data releases tomorrow, but most importantly Powell is speaking at 1:30 PM. While this is not an FOMC day, this can still introduce incredibly volatility and will make tomorrow a day for tactical, level to level day traders.
In todays newsletter, I’ll be discussing the actionable plan for tomorrow, the critical must-hold support level just below here, and how I traded today’s messy chop via yesterdays plan