Market Plan for October 13th, 2023
Friday the 13th...
Good evening folks,
Bulls finally tumbled as we dropped more than 50 points today. The reaction to CPI was incredibly underwhelming, one of the worst so far. If I show you an intraday chart, you’d usually be able to tell when CPI occurred from the size of the candle. Today, you wouldn’t be able to tell. It was a large candle, but not any larger than a typical candle at the open.
The real move came after, where we subsequently ranged in the 4375 area before finally capitulating and dropping to the 4340s. We ended the day with an oversold bounce to the 4350s.
This move followed our plan from yesterday with extreme precision. Let’s review:
If we keep moving higher overnight, it’s not the best sign for bulls. It would indicate exhaustion rather than strength.
We did indeed move higher overnight, and this is exactly what happened. Bulls capitulated as soon as they hit 4400.
I said, “We want to see many failed breakouts and attempts to hold 4375.” For those who were watching today, we had many attempts and failed breakouts at 4375. It lasted for hours. This did not end well for the bulls, who were unable to hold it. We proceeded to drop straight down to 4340 after this. You can’t really get more precise and accurate than this, can you?
Will this drop result in a bounce, or a further drop tomorrow? Here’s my plan: