Volatile Phase Likely Incoming For SPX: November 9th Plan
In yesterdays newsletter, I wrote “I expect complex and difficult trading ahead” and this was certainly today, with big, bi-directional moves. Despite massive volatility though, it played out nicely according to yesterdays plan.
I wrote last night: “My general lean though is something like the green arrow shown below - I’d like to see price perhaps pullback or base off this 3820 zone, defend supports, then continue up to the 3850-55 area to try another pullback before heading to 3885 triangle resistance” We rallied to 3855 (overshot it a little), got the bigger pullback as expected, then squeezed into the end of the day. With mid-terms tonight and into tomorrow though, then CPI on Thursday, we are entering into a period of high complexity trading.
As written in prior newsletters, ES been in a new buying dips regime since October 13th, forming a perfect rising channel in my below chart. The question is, can it sustain as we head into mid-terms then CPI? In today’s newsletter, I’ll talk the bigger picture pattern which will control the next few months, my plan for trading tomorrows wild action, and I’ll also go over my core trading setup