Market Plan for August 28th, 2023

The ultimate decision...

Good evening folks,

Powell delivered his Jackson Hole speech around 10:00 a.m. last Friday. The market proceeded to spike then drop dozens of points over the next few minutes. A few minutes after that, the market tanked over 40 points from 4400 to 4356. We bottomed at this level, after which we rallied 60+ points to 4420. We closed near 4400.

Although it was a volatile day, we took several profitable trades. It started the night before, after we dumped on Thursday. I went long from 4385 to 4375, targeting 4400. We had a high probability of bouncing after that dump. Something to take note of: if the market dumps/rallies heavily before a big event, it’s likely an overreaction and a good fade candidate. We profited 10-20 points before the market even opened.

Once the market opened, I gave it space to breathe and didn’t enter anything until I saw a bottom forming at 4356, after which I went long twice, profiting 20-30 points each time.

This is all from using supply and demand zones and price action. Our levels proved extremely accurate once again. Now, let’s make a plan for tomorrow: