Market Plan for August 16th, 2023

The big short...

Good evening folks,

After a strong short squeeze yesterday, bulls lost their footing and collapsed to 4450 overnight - nearly 40 points. At the open, there was a brief surge to 4470, but it quickly failed. The 4470 level is a major resistance, and above it, we would have continued to bounce. This is why I planned to go short if we broke below 4470 in yesterday’s plan:

If we break below 4470, we are targeting 4450.

We even went farther than 4450, all the way down to the 4535 level. We’ve now penetrated a major support level. Here’s the supply/demand chart:

Where does this leave us for tomorrow? More downside? Or is this just a large-scale stop hunt before we rally again?

Let’s create tomorrow’s plan and find out: