SPX Bulls Defend Major Support, But Jobs Report Incoming. November 4th Plan
After yesterdays FOMC melt-down, ES found some support today and its no coincidence where from a technical analysis perspective. Not only did we hit the 50% retracement of the rally from Octobers bottom, but more importantly, we back-tested the 4 week, perfect inverse head and shoulders pattern that broke out on October 21st and caused the 180+ point late October rally. This is a critical zone
This area as readers know was my target area for the short/selloff yesterday (the blue box zone in below chart at 3735-3720) and while we got a bounce out of it, it was very muted for such a major backtest, meaning bulls are at major risk here. In addition to this, tomorrow is another event risk day, with the NFP jobs report at 8:30AM EST which could easily provoke a violent reaction similar to yesterdays FOMC.
In today’s newsletter, I’ll be discussing what I’m looking for tomorrow, educating on a variation of my core failed breakdown setup, and talk what the melt-down triggers are and plan for trading tomorrow