As mentioned yesterday (www.tradingview.com/...TUvL1o-09102023-SPX/) and as perfectly played out, market gapped down on bad news was a perfect buying opportunity and SPX eventually closed green at the highs. Price action was so clean, with price just consolidating for the whole Asian and European session, only for the huge rally to start in US session; with PZ holding the lows (and the same time NDX PZ also held the lows) before the start of the rally.
It should be noted that US bond market was closed yesterday. Is that a fake rally? IMO regardless price action is pointing to further upside, until it is not. And for now, we can see how market rallied and is going higher. Somewhat a euphoric state. TBH, I would prefer if price consolidate first, or even pullback (to 4316) before the next up move.
This is a case of, if you are in position, you just hold it and ride it. But if you are not, going long here now would require tight stops. From the current rally, it would be more likely that price goes to 4360 first (which was my price target given yesterday!). And given that steepness of the move thus far (and the strength of that resistance), I will be cautious of a pullback from there.
I would likely not take the shorts, but just wait for the pullback (possibly to 4330 or so) for a move higher. Overall, from current looks, price action looks strong and some what euphoric. Wednesday 11 Oct is US PPI. Will not be surprised if price just rally up to 4396 strong resistance then market make a big pullback from there on PPI news (reversal or not will remains to be seen).
It should be noted that US bond market was closed yesterday. Is that a fake rally? IMO regardless price action is pointing to further upside, until it is not. And for now, we can see how market rallied and is going higher. Somewhat a euphoric state. TBH, I would prefer if price consolidate first, or even pullback (to 4316) before the next up move.
This is a case of, if you are in position, you just hold it and ride it. But if you are not, going long here now would require tight stops. From the current rally, it would be more likely that price goes to 4360 first (which was my price target given yesterday!). And given that steepness of the move thus far (and the strength of that resistance), I will be cautious of a pullback from there.
I would likely not take the shorts, but just wait for the pullback (possibly to 4330 or so) for a move higher. Overall, from current looks, price action looks strong and some what euphoric. Wednesday 11 Oct is US PPI. Will not be surprised if price just rally up to 4396 strong resistance then market make a big pullback from there on PPI news (reversal or not will remains to be seen).
Join me for free on Patreon (www.patreon.com/fademeifyoucan) to receive my daily FX and indices trading plan.
DM me to join my new group to learn all my trading levels and to trade together.
DM me to join my new group to learn all my trading levels and to trade together.