SPX ES SPY Plan for 10/31
Bottom this Week??
Today we knew that buyers would be in short term control above 4142.5-4147 range, but I made it clear that I would not chase a gap up. Instead, I would either sit on my hands or look for one of our short setups. As price opened above the 4161.25 level this only left the look above and fail of 4176.25-76.75. This played out perfectly just after establishment of the 30-minute opening range and we got 2 of our downside targets for 20+ points if the trade was taken. We knew that we could possibly get 50 point runners (again) but that we would need under 4142.5-47 for this to happen. As it was, buyers were strong at defending the backside of prior supply (started 4153.75 from weekly) and the 4155.5 level. This presented as a decent reactive long opportunity for those that used the levels to do so. While there were a couple of pretty decent (not A+) other short setups identified in the discord which each could have cleared 15 points, we knew that a massive short covering rally back to high of day would occur in the absence of a NLOD after the fail of 4173 in the early afternoon.
The question everyone wants to know is whether or not we have sufficient signs of a bottom between Friday and today to initiate a swing long. Let us discuss.