Market Plan for October 20th, 2023

A feast for everyone

Good evening folks,

We had a wild day. We opened near 4300, rallied to 4340, dropped back to 4300, and went back to 4340 again before declining to 4270. Both buyers and sellers feasted today unless they kept buying the top and selling the bottom. Sometimes you must “catch” the move instead of waiting for confirmation.

I went long at 4300, targeting 4340. Here’s my plan from yesterday:

We can dip all the way to 4300, but we want to see a ferocious bounce come out of that. Once 4340 is reclaimed, bulls can begin targeting higher to 4362+.

The daily chart looks ripe for another day to the downside if 4300 breaks.

We did indeed get a ferocious bounce but failed to hold 4340 for more than a few minutes. This volatility happened right when Powell was speaking. I went long again at half risk once we hit 4300 again, and covered most of it in profit after it failed to break 4340.

We’re at a major support level, and sentiment has turned bearish. Is this the recipe for a Friday bounce or will there be more bloodshed? Here’s my plan: