SPX Is Basing For A Big Trend Leg. What Way? March 16th Plan
I concluded yesterdays newsletter by writing: “3885-3960 remains the chop range and inside this range will require tactical, technical trading. No greed”. We rallied from 3885 yesterday, to 3960, then sold back to 3885. The above quote though likely understated the degree of chop and technicality for the majority of today’s session. ES pinned to the bottom of that range in 3885 zone, faking above and below all day, and this level has been tested over 8 times this week alone, with multiple failed breakdowns.
After being spoiled by lucrative, big trend moves all week with fantastic follow through, this was overdue. As readers know, this 3885 zone is no coincidence, being a multi-year uptrend line (shown in red in the chart below), and I have been talking about this level all week. Late day today, it held yet again with force leading to a late day squeeze.
In today’s newsletter, I’ll be providing my guideline for staying out of trouble during chop days, providing my bigger picture lean, then talking the actionable trade plan for tomorrow.