SPX Is Clinging On To Multi-Year Support. Can It Hold? March 2nd Plan
I concluded yesterdays newsletter by writing: “My lean for tomorrow is more chop likely. As long as 3955-48 holds, bounce in play back to 3985, 4007-12” adding that “I will be taking profits fast, no greed”. Today again fit the bill, and we saw *four bounces* off that zone in the past day, with the largest overnight getting to 3990.
This zone is not a coincidence, but rather technical analysis 101: It is the back-test of the core bear market trendline from 2022s highs that broke out in January. What happens here has big implications, and the week of chop in this zone reflects ES simply being unable to make up its mind.
We closed today right on this line, and its quite likely that ES makes its mind up tomorrow. In today’s newsletter, I’ll be going over my trade management strategy, talking how I am playing ES at this critical inflection point, and provide the actionable trade plan for tomorrow.