Market Plan for September 29th, 2023
Will we finally reverse, or is this just another bull trap?
Good evening folks,
Hope you all traded well this session and didn’t try to go short too often. Bulls dominated most of the day. We had an outstanding short squeeze, rallying over 50 points from top to bottom.
We opened around 4270, ranged there for a few minutes, then ran up to the 4290s. Sellers stubbornly rejected the price a few times before we finally broke higher to 4300. Once 4300 broke, we rallied 20+ points. We ended the day back near 4300. I was long since 4272, and took profits at 4300 and 4311. I bought once again at 4300 when we dropped, and took profits before the market closed. I still have part of the position open for my final targets with stops above breakeven.
In yesterday’s post, I explained that market structure favored the bulls now, and it would be difficult to drop under my entry level:
It will be difficult for bears to get back below 4270, which now serves as a major demand level.
We definitely had an unusual reversal. After the initial breakout, the market jolted up and down a few times, which seemed unhealthy. Is this the sign of a bull trap, or will bulls shake it off and keep moving higher? Let’s create tomorrow’s plan to find out: