Market Plan for September 21st, 2023
How will bulls get out of this one?
Good evening folks,
Hope you all traded well today. We had the usual FOMC volatility. This time, we dropped 50+ points straight. We opened in the high 4460s then slowly declined to the 4450s throughout the morning. I went long yesterday afternoon at ~4445, targeting 4460 and 4470. My first target hit this morning:
We had not yet reached my second target by 1:00, and it was too close to FOMC. I don’t trade the FOMC, so I wanted to have no position. I exit the rest at 4454. Once FOMC came, the market had an extremely bearish reaction. I foresaw that this would happen if we couldn’t stay above 4450, and it happened exactly as I had stated in yesterday’s post:
The bears want a revisit of the 4430s. It would be especially good if we re-test 4450 overnight but fail to break above. This will give them an advantage and a greater chance of breaking 4430, which will, of course, cause a big drop to 4400. This may happen after FOMC, due to the amount of momentum needed.
Now that we’ve dropped to 4400, the situation seems hopeless for the bulls… or is it? Let’s create tomorrow’s plan and find out who wins tomorrow: