Free Fall For SPX..Can The NFP Report Save It Tomorrow? March 10th Plan

Today was an “Outside Day” in ES, after two full days of playing ping pong in the 3975-4000 range, ES took out both the highs and the lows of the range in a single wide range session, triggering a morning long, then massive afternoon short in the same session.

As readers know, I was looking long to start the day off 3975-80 with 4010, 4022+ plus targets. We got to ~4020 in the morning, before violently reversing and losing the 3975 multi-day support. I wrote yesterday: “If we do break 3975, we likely start a deep sell”, and deep sell was an understatement here flushing 100+ points from the high of day. This leaves us in a very interesting spot technically and catalyst-wise heading into tomorrow.

Tomorrow is NFP day, which like CPI and FOMC days, are notorious for producing volatility. Today however, ES seemed to “front run” much of that volatility. In addition to this, ES also lost several critical supports putting the case for bulls in major jeopardy. In today’s newsletter, I’ll be talking what today’s breakdown means, discussing my trade management philosophy, then providing the actionable plan for what should be a big day tomorrow.