Market Plan for August 3rd, 2023

Did we get a good dip buying opportunity or the start of the bear market?

Good evening folks,

After yesterday’s credit news, the market experienced a significant gap. For the first time in a while, the dip was not bought. Instead, it kept falling. We dropped more than 50 points from yesterday’s 4561 level. I indicated this weakness in Monday’s plan when we rejected 4600:

If the market stalls for too long below 4600, it’s a sign of weakness. All of this action depends on whether 4600 is respected or not.

This type of price action is odd, however. It’s a broadening formation, which is not the strongest indication of a bullish continuation.

We trended down throughout the whole day, offering great short opportunities at several levels like 4550 and 4530. There were a few long opportunities, but none had a good risk/reward, especially when compared to shorts. Here are today’s supply/demand levels, which were extremely accurate.

Does today’s action spell the end of the bull market? Is it just a great dip-buying opportunity? We’ll let our levels and analysis determine that…

Let’s create tomorrow’s plan: