Market Plan for December 7th, 2023

Bears back in control?

Good evening folks,

After an overnight run to 4590, we attempted to break to 4600+ right before the market open. At the open, we quickly dipped, but it didn’t recover. Instead, we kept dropping lower and lower all day. From 4590, we dropped to 4570. Bulls and bears struggled here the whole day - bears had market structure and momentum on their side, but bulls didn’t have nearly as much. It was extremely choppy, nearly untradeable.

My bearish projection from yesterday estimated that the run would continue to 4590 overnight, and then break from there and spend the whole day going back to 4550. Here’s what happened:

Now, it seems that sentiment has turned overall bearish. After today’s failed breakout, is this sentiment correct? Will the contrarian move - going long - be the correct move? It’s a tough one. Here’s my plan: