October 27th, 2023

Bears still have the momentum, but today the bulls have a chance to keep things green. As I mentioned yesterday, this market is not trading like a V bottom is in its near future; we’re grinding lower. When we’re grinding lower, it gives the bulls false hope that they may have found a bottom and creates a lot of whippiness, and rallies fade in key spots. I will be keeping a bearish bias until I see the daily Bollinger Band start to come back inward, and I see key areas of resistance fail to hold.

The 60-minute chart is a good chart to look at for daily direction. I use Bollinger Bands, my Beacon indicator, and VWAPs to guide me. Today, my key levels are all coming from the 60-minute chart. The key pivot is 4176.50-4182.75. If we can hold above there, I will be looking long for a test of 41.96.50. I view that area as slight resistance. I will trim my position there and watch how the market trades around it. If we fly through it, I will look for 4216-4225, where the bulls will meet their true test of resistance. I will be flat in that area and look for potential shorts.

If we fail to hold 4176.50-4182.75, then it’s game on again for the bears, and I will be looking short and a possible test of 4130-20.

All in all, I expect another wild day. This market is rewarding those that act quickly when they need to and those that are patient. Wait for your spots, execute with confidence, but don’t be in a hurry when you shouldn’t be. Have a wonderful weekend! Cheers!