Market Plan for August 22nd, 2023

The market bounces back... where do we go next?

Good evening folks,

The market begins the week by continuing its recovery after last week’s 150-point dump. We opened at 4380, dropped to 4362, then ran to 4410 - a massive 50-point move. This is exactly what we planned for in yesterday’s letter, where I wrote:

The 4362 level is the last price point before breaking down. It must hold to prevent total collapse. As long as this is the case, the uptrend is in place to move to 4400.

Above 4375, we will be targeting 4389 as a first target and 4400 as a second target.

If you check the chart, notice that we dropped right down to 4362 before rallying to 4400+. Following yesterday’s plan, you could have easily captured 20-30 points…

Where does this leave us for tomorrow? Let’s create a plan: