Market Plan for August 9th, 2023

Time for sideways action?

Good evening folks,

The market did a round trip today, moving from 4490 to 4470 to 4510. There was massive intraday movement on both sides and plenty of trades to take. We noted the 4490 level yesterday as an important demand zone that had to hold. I also noted it this morning, warning of a 15-20 point drop if it broke.

The 4490 level broke shortly after opening, and we did indeed fall 20 points to 4470. The 4470 level was a critically important support level. If it broke, all bets were off. It could even be a Black Tuesday-type day. Bulls held the level and moved back up to 4490, then had enough fuel to push this bounce to 4510.

Chart:

Where does that leave us for tomorrow? Let’s create tomorrow’s plan and find out: