Wild Day Of Swings, Real Volatility Still Incoming For SPX: October 12th Plan
I wrote in yesterdays newsletter: “I expect a very choppy, “ping pong” sort of week. This means be prepared for more days like today - this will be a week for tactical day trading.” This could not have been more true, and ES spiked to 3630 first thing in the morning, sold down to 3575-95 support zone, spiked to ~3655, then dumped back to into support to close the day and bounced again.
The market is building a clear, wide two week+ base with 3575 support and has generally spent most this week stuck between 3575 and 3630. This multi-week base is building after the September melt-down leg, to setup the next clean trend leg. CPI Thursday is a possible breakout catalyst.
In yesterdays newsletter, I spoke about how it was critical for bulls to defend the 3575-95 critical support box (blue in below chart) to keep the October rally going. Bulls tested it *twice* today. In today’s newsletter, I’ll be talking how I traded todays wild action via yesterdays plan (there was a couple clean setups), talk the pattern I think is forming here + targets, and then talk tomorrows trade plan