October 3 Chart of the Day - S&P 500
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LET'S GET READY TO RUUUUMMMMMBBBBBBLLLLLLEEEEEEE!!!!
Today we'll take a look at the weekly S&P 500 (/ES) chart where we can see a major upcoming decision that price will be making.
What's at stake is control for the bulls vs bears...
From a price action technical analysis perspective it's just another day at the office in identifying levels of interest in both directions and then developing an actionable trade plan.
Because we're neither bulls nor bears we don't get caught up in the headlines nor do we really care which way the market moves... so long as it moves.
With all that said what's most notable on this chart is the weekly trend line and a recently formed changed control zone.
Quite simply, above the zone bulls control the chart and below the zone bears control the chart.
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
Take a look at the charts and let us know what you think.
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Bulls Won! (for now)