October 13, 2023 SPX, SPY, ES Trade Plan
Market Review - Last Session
Hello my fellow traders - today is Friday the 13th and we may just see something weird on the trading day.
Yesterday was quite interesting. We had a higher than expected CPI print - higher by a bit yes but none the less bearish for sure. Yet, the market did rally and then dumped and then took back from that dump.
So what does this mean? Market makers can’t decide what the value of the market is. We have bears and bulls both fighting in a relatively tight range. Who wins? Well not here for me to predict, but I would love to see the bulls win. Who doesn’t like more value in their 401k, America winning, etc, am I right?
Where I am going with this is that we can see whipsaw action up and down until we break one of these key levels. What are they? In my opinion 4385 and 4220 are those levels. We break either above or below those and that’s where you will have your next trend. If you are curious how long this will take. Just do yourself a favor and go back in time on a 2hr or 4hr chart and look how long it took us earlier in the year to break that 3900 zone…
Additionally, in yesterday’s trade action that parallel channel I called out held us to our high of the day just as it did on Tuesday and where we started to sell off from 9/20 and 9/21. So please pay close attention to these key levels, why we call them out as key levels and trade them. In the event we had broken the channel we could have stayed bullish. Instead we tagged it and then immediately sold off from it.
Don’t forget today we have news coming out at 10am est or 30mins after the session open. So expect a choppy session to start and then find balance to trade a direction afterwards or find the “next” move after the news. All-in-all the day so far looks choppy as heck especially near where price is at. So it will take some 0DTE to get us moving in some direction. Thus why I think we chop around until after the news look at the vanna levels below for an example.
On to today’s trade plan…
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SPX/SPY/ES Intraday Overview (TL;DR)
Today I would be careful of any chop and just bouncing between key levels. Go lighter today. It is Friday and we have had an amazing week.
We have news out at 10am est which could lead to choppy conditions until then.
Thus if you are a bull you want to get price above 4360 to target 4370. Above that targets 4385 AND IF we break that then we target 4395.
If you are bearish…
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