We got our Jan 11th high today, no doubt. Many were trapped from Monday trying to short the markets and are now being squeezed. I see a lot of puts being bought by the institutions today on SPY, which can be a direction teller.
So what I think will play tomorrow is we spike up and crap from the open. I’m getting married to this idea, so I don’t want any of you to bet your house on it; it’s a simple observational decision I made.
If we get a spike to 11600 and hold that level at least on 1h candle, I will add to my short positions!
There is a chance the price gets above that level if the numbers come weak, then the next target will be at over 11800 zone! So mind your stops and ensure your risk management is in place.
I doubt anyone can predict the outcome of tomorrow’s numbers unless it has insider information.
I will be up before the release of the number to make a decision to go long or short, 5-10min before the announcement. I will do my best to post my trade here.
I have a perfect fib confluence at 11600 for the right shoulder and the two targets below the neckline.
As for the targets on the downside:
- The first major support is at 10020-25NQ, which should produce a good size bounce back to 10600+
- Second and the final target for the whole move down from Nov 2021 highs – $9-9.1k
The second target has a perfect fib confluence for ABC (A=C) and H&S 1.618 extension down.
So it’s all up to tomorrow’s numbers. Will it gap and crap, or gap and stay up all day.
I’m on the Gap and Crap scenario as long as we hold at or close to 11600NQ tomorrow am.
Also, please note we have an earnings season starting on the 13th with big names releases; it will be interesting on where the price will be at that time.