SPY/QQQ Plan Your Trade - 7-23 - Price Consolidates Before Rally

23 jul

Good morning,

This is the Plan Your Trade video for July 23, 2024.

Please watch this video to learn why you may want to consider the next 36+ hours as a STAY AWAY type of trading range.

The SPY Cycle Patterns suggest the price will consolidate today (23) and tomorrow (24) before attempting to move into a solid Rally phase on the 25.

I believe the next 36 hours should only be played by skilled day traders. When the price stays choppy and in a very tight range, there is minimal opportunity to catch moderate swing trades.

Remember, any price move below 554 on the SPY chart will likely be rejected higher - setting up multiple base/bottom levels over the next 36 to 48 hours. Those moves below 554 may become solid entry levels for my expected Bullish rally phase on the 25th and beyond.

This is one of those lessons where the patterns show very tight price ranges over the next two days. That reflects a minimal opportunity for day traders.

But remember, we are basing/bottoming ahead of the 25th+ rally phase. So, this still presents an excellent opportunity to plan/prepare/execute a broader trading plan.