Daily Plan 6/29 '22
A Stunning Reversal
In a stunning reversal, S&P500 opened at 3920, made a beeline to my 3950 and then gave up all its gains to trade almost 130 handles lower at 3820 within a few hours.
This is what I have been warning about, this is what I was all about in my weekly post and how I just cannot trust this rally below 3950.
Here is the weekly plan for those who may not have read it yet: link.
We had been balancing for several days now, in fact it is almost mid of the week and we were not even able to take out a peek above 3950. And now all of a sudden within a few hours all of those gains have evaporated.
3950 was the high of the day! The market could not even trade one tick above 3950. Shows you how good the order flow level was and how little this market thought of this rally.
Sadly, a lot of folks got caught up in this. The first few minutes of the session open can always be tricky and today was a good example to prove this.
A lot of my other levels and ideas also did well today- whether bear AAPL or a bear TSLA or a bull OXY. Tremendous moves in them. BTW read my thoughts on the oil below and why I think 106 may be a new key level to watch for in oil.
BTW, I do not do this often but July 4th is a BIG deal for me personally as one of my favorite occasions and reasons to celebrate ..
To commemorate, I am offering the biggest discount yet ever on this substack. Click on the link below to get this discount ! Valid only for today.
Take an extra point off if you are a student.
The morning session as I said opened very well and traded right up to my 3950. This is where a lot of folks got caught on the wrong side of things. The CB Consumer confidence came and just stank all the way. This was a very weak read.
This is when I send a set of tweets expressing my disbelief that while we had come off 25 handles off 3950, stocks like AAPL and TSLA had not gotten the memo. Well, the good thing is the cooler heads prevailed and they saw how big of a deal this really was for TSLA and AAPL - both reliant on the consumer and both stocks sold off below my levels shared here in the Stack, taking the SPX with them.
My thoughts for the session tomorrow..
There are a couple of things which I think may be supportive of the markets.
First one is the number of Central Bankers speaking tomorrow.