Market Plan for August 25th, 2023
Can the market survive Jackson Hole?
Good evening folks,
In a rare move, the market tanked 100+ points today after rallying 70 points yesterday. The market broke above several key levels yesterday and rallied non-stop until the morning. We ran to 4475 in the pre-market. Once the market opened, we trended downward all day with incredible conviction. It was like yesterday, but inversed. We closed at 4375 - a mammoth move.
After a short-lived bounce to 4450 at market open, we went straight for 4430. At this point, it was very likely to continue dropping. This followed yesterday’s plan:
Below 4430, we will be targeting 4400.
Bulls are only in trouble if 4430 breaks because it’s very easy to slide down to 4400 from there.
We had some minor support at 4422 but after that broke, we headed straight down to our 4400 target. We ranged at 4400 for over three hours before breaking that too and heading down to the next demand level.
Was this just an overreaction to Jackson Hole? Are we at the beginning of a larger crash? Let’s create a plan using supply/demand and profit from it: