SPX Is Sitting At A Major Inflection Point. Will It Hold? March 9th Plan
After yesterdays major trend day to the downside, today was a chop day. I wrote in yesterdays newsletter “3975 is a must hold support” and spot I’d be looking at longs. ES certainly agreed today, and after a good 28 point rally and long setup off that 3975 level, spent the entire day chopping and consolidating before holding again late day.
The fact we spent all day at this 3975-4k zone is no coincidence. The last week of February was spent in this exact area, and it is also the precise spot we began the 160 point lift-off last Friday. While commentators endlessly debate “bull” vs “bear” we remain a 10 month sideways range, and this remains a market for disciplined, level to level day traders.
ES did put in an important attempt at a swing low last Thursday/Friday though, is now back-testing the zone where it started, and the next day or two determines if this rally flops or not. In today’s newsletter, I’ll be discussing this, providing a rundown on my core trading pattern which was useful today, then providing the actionable trade plan for tomorrow.