Market Plan for August 31st, 2023

Time for a pullback?

Good evening folks,

The rally continues as we make new highs today. We soared up to 4510 overnight then dropped to 4490. We rallied up to my 4523 target, dropped back down to the 4490 area, and then ranged in between these levels for the rest of the day.

We caught a good part of all three of these moves, highlighted by yesterday’s plan:

Above 4510, we will be targeting 4523 and 4535.

I left sell orders just below 4510 yesterday, with stops at 4515-4520. If the market rallied to this point overnight, it would be over-extended and likely pull back to 4490. This is exactly what happened.

Once the market opened, the plan was in play. We quickly rallied to our first target, 4523. At this point, the market was heavily overbought. I sold the entire position early near 4520 and waited. Price action was beginning to follow the overbought sentiment and started falling rapidly. I went short at 4518, targeting 4510 and 4500.

After this, the market was rather slow and choppy. There were no good opportunities, so I did not enter any more trades. Overall, it was easy to profit dozens of points today from simple supply & demand levels.

Will we finally begin to have some downside tomorrow, or is this move not yet finished? Let’s make tomorrow’s plan and find out: