Thursday Update 12/29/22

Wednesday 12/28/22 Session

Looking back at what we predicted for todays session…

In yesterdays Weekly Update I noted a very potent level that has steered clear of shorting low 3800s. 3837, what was said?

Now that we have sold down to my 3837 buyer area, I don’t believe this will hold the next time we attempt to sell. 3816-3830s was noted over a week ago for being a major LVN and I stated I want to see this fill in this week as we lack events. Avoiding trading here has steered clear of painful trades.

How did we do?

The trading session started off with the selling of the E-mini S&P 500 futures contract (ES), which initially dipped down to the 3846 level before being bought back up. From there, the overall market saw a sharp rally that brought ES up to the 3875 level, a key area that was identified in the Weekly Outlook as a potential level to get short. This was because there was a belief that the market could potentially retrace back down to the 3860 price point of control (POC) and the 3830-3840s value area lows.