SPX Closed Today *Right* At Multi-Month Support. What now? Feb 23rd Plan
Yesterday, ES broke down a perfect 3 week bull flag pattern at 4070, triggering shorts on the day, and they certainly delivered with a one directional, nearly non-stop 70 point move down. A failed bullish pattern, is a bearish pattern. Today, was the opposite, spending nearly entire day in consolidation mode above 3995-4k, putting in one of the most choppy, technical days in months.
As written in yesterdays newsletter, this 3995-k zone that the market was glued to for nearly 24 hours, is no coincidence: This was the core rising trendline from the October 2022 low, as well as the 50 day moving average, and explains why price spent most the day chopping and trapping in this area. Just under here is the 200 day MA at 3975 and it safe to say what happens here as key implications.
In today’s newsletter, I’ll be talking about this key zone, providing my full guide for trading in choppy conditions like today, avoiding overtrading, and grinding out a gain, then providing the actionable trade plan for tomorrow.