Has Luck Run Out For SPX Bulls? Feb 10th Plan

I concluded yesterdays newsletter by writing the following: “We remain in a chop zone between 4090 and 4175 or so and this likely continues filling out until CPI Tuesday”. Fill out it certainly did and we ~touched both these levels within a single session today. I was looking for a rally yesterday from 4128 back to resistance then fill out the structure, and we spiked to ~4175 overnight, then sold back down to 4090 support.

We have now made the full round trip in this range *4 times* in the past week: Rallying to 4170s resistance, trapping breakout chasers, selling to 4128-4130 or 4090s, trapping breakdown chasers. Zooming out to the daily chart, this is very clear with 6 daily candles stacked side by side. Like every consolidation, this one will result in a one directional trend move lasting several days.

Today, however, we closed right at major 1 week support. Can bulls hold it yet again or has luck run out? In today’s newsletter I’ll be addressing this, and providing the actionable trade plan for what will be a very important session tomorrow.