Market Plan for January 4th, 2023

Fed ruins the market

Good evening folks,

As expected, today was another choppy day. I’ve mentioned that short weeks like this tend to have choppy price action as both sides are gridlocked. We dropped overnight from 4745 to 4725, then continued falling to 4713 after we opened. Bulls held up a fierce resistance, as this level was firmly tested no less than four times, but bears eventually broke through to 4706.

In the High-Roller Room, we took three trades. The first was a short from 4725 to 4714 (near LOD) for a gain of 12 points. We then flipped long at 4721, aiming for 15-20 points higher, although it was too choppy. I scratched it around 4717 and waited for clearer conditions. I re-entered at 4722, took partial profit at 4734, then got stopped out of the rest of my position at 4713.

Did we make a short-term bottom, or do we still have lower to go? Here’s my plan: