Daily Plan 12.7.23
The expectation from last night was to see sellers emerge near 4600 for a retest of 4570.
This was indeed the case and we found a shallow bounce off this level before I sent a chat update below I expected more selling today after that LVN formed on the 4574 level.
After this chat, we sold off again about 25 handles to end the day near 4550.
The session today continues the balancing conditions set many moons ago and I think we could see some sort of resolution on Friday with the non farm payrolls.
Refer to my weekly ideas for more on this.
As far as tomorrow goes, I think Gold is seeing some support come in as well as the bonds have been well bid from that 80 level in TLT.
This makes me think 4550 may be a key level tomorrow.
Scenario 1: I expect bids up to 4584 level as long as 4550 level holds. At time of this post we last traded near 4550.
Scenario 2: For any type of trend development, I like to see either 4550 go on downside or 4584 give up on the upside. Until this happens, I think we could see more balance like conditions and we may float up into 4584.
To summarize: despite good action today, I think directional clarity is lacking and I feel that may not come until Friday with the NFP data which will be key. Range conditions may continue until the levels I shared above break on downside or we break out of it.
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