SPX has a gap at 3,934.38 from Friday's close. It should fill. Will it fill today or be saved for one of the economic events remains to be seen..

It is shown in the SPY trades section, entry date 12/7/22: https://breakpointtrades.com/spy_trades/

Goldman also has a few other scenarios including a dovish one of SPX 4,700 if it is not as bad as thought and one in the middle at 3,600 with a rally to 4,000. One will notice they will point to the one that suits their position depending on where we are from a price perspective. They did this just recently when buying the reversal off the lows and stated at that time that "it was likely a recession would be avoided". So now that stocks found short term resistance at the 200 day, they are on the supply/bearish tour so to speak and talking on that end of their forecast. 

Goldman is simply running a business like everyone else. I think most know this by now though it is worth having reminders of how things work and why they are being done in order to better prepare and plan accordingly for me (perspective, context). It helps me mentally when things go to particular areas in knowing the risk/reward is shifting and how to use that information. Similar to how indicators, other tools, news, and charts are considered. I find it particularly helpful and encouraging to see how they are essentially navigating trading and investing just as I am. 

Every year I set a low and high end for the market (SPX) for operating my trading and investing strategies. Before the recent movements, I was at 3,500 on the low side and 4,500 on the high side for my plan. There was another scenario where we could have overshot my low end and one that overshot my high end, though they would have been really extreme and even better opportunities to position. These figures can/will change over time given new information presented and how the market reacts to it. Gaps in the cash market prices also help me out a ton in managing risk. Once I view it this way, it becomes a lot less scary to operate in the day to day. So when the big stories come out of celebration be them bullish or bearish, I can take a more relaxed approach in that this is part of the game, and see how I'm going to respond or make changes if warranted for whatever my timeframe, tolerance, and goals are accordingly. 

I keep it simple, for the trading strategy, I use two instruments to execute it. One long and one short. 

For my investing strategy, I use a handful of instruments maximum, stock indexes, sectors, bonds, and cash. 

In any case, it is simply a matter of how much capital I'm willing to have in any of those areas given the risk/reward proposition. That's it. Another day I wake up grateful and have a shot at life. Best of success to all this week personally and professionally. 

(this is an excerpt from my trading/investing journal 12/12/22)-FV 

Cheers Steve, enjoy! 

3,933.92 gap filled

The gaps don't lie like Shakira says, haha

Haha, classic. Great stuff, Matt!  

I saved this post link for my archives for reference. I regularly train and read my fundamentals to practice. 

Reminders are so important, practice includes being reminded of what is foundational for success.

You always see players going back to review the film to learn, can do the same with this. 

This is a great chart Matt. Some things take time to sink in for me. I'm just noticing that the levels shown here coincide with the ES levels that Steve posts everyday. Someone pointed out how long it takes to build a plan and be able to execute over time consistently. It reminds me of when I was learning to play guitar, there is definitely a curve for getting going, though once I did, the skills build, confidence, and then you can do some things you never thought possible in the beginning. Thank you!

An excellent time to be patient now for me after the morning action/profits. As you prior noted a lot of the action has been coming in the afterhours and premarket sessions, particularly around these economic reports where volatility picks up. It has been great for risk/reward when considering the supply and demand zones. I actually think I'm starting to put some things together trading wise, my consistency is up and it is much more simple to execute with my chosen instruments. I only use 2, and a few tools. 

Now back to realizing I know nothing but what I have, the major areas of consideration, gaps, and taking the next trade totally independent with the new information I need to consider. Doing what I can to enter into high probability setups. Being here has grown me a trader, thank you guys. 

Great call by Steve of the supply zone. I was prepared to scale a short trade into higher areas, though the amount I played worked out nicely, further strengthening my positioning with the added profits. I took profits in one account and left some on as the entry price is very good another against some longer term swing inventory..sold some on the long side into the strength as we were gapping up before the number. Then bought that portion back on the woosh down after that number. 

The gap totally flipped now from it being a gap up to a gap down. Pretty cool hitting on both sides. 

re: supply zone 3,984-4,015, also used chart provided with fibs, and chart provided with supply and demand zones (my charts used for my plan, attached from the newsletter) 

Thanks for the great work in the newsletter Steve! 

Happy Birthday Steve! Have a fantastic trip!    

It is all positive and will set up opportunities for a great risk/reward trading and investing. Tutes will clean up as usual, just taking what they give when they give it. They need a spread to make money and so do I. 

I'll continue to watch/play the gaps on both sides. The rest is all noise, I'm  aware of news items and just using reactions to profit. Same game different day. 

Just arrived in Miramar Beach. 

SPX 3,933.92 gap is still open on the cash below (yesterday's close), didn't fill by a few points. 

First gap above at 4,071s.

I locked some down from my long position (SPXL) in one account when we had that push into 3,970 area. Still have my other 1/2 in that account, 1/3 of a short position hedging it (SPXS) from the Friday entry with the system. 

Also have a full 1st entry bear long in another account left still. (SPXL)

Traveling to Destin, FL. Returning Sunday. All the best. Congrats to all.

SPX It is bear long time haha 

My instrument is SPXL as usual 

Really great stuff Matt, helps a lot. Thank you

SPX I took a double my normal size entry long via SPXL off the 3,920s area where I released another 1/3 of my hedge position (SPXS) into the strength. I have 1/3 of my hedge position left (took that trade originally with the system on Friday close) and a great entry long into an overshoot of the demand zone (today). 

I sold the small bounce premarket this morning after buying SPXL yesterday at 3,987, the low 4,000 and change somewhere is where I sold. Didn't like the gap, though certainly didn't expect this dump. Patience has paid this week. Pretty stretched away from the 5 and 9 day mas again here now, risk/reward:

https://schrts.co/qedpsEzU

SPX VIX One of the things of note about the market currently is that the VIX has just begun to rally off the bottom area support and stocks haven't fallen all that much yet from the most recent rally to 4,100. The VIX has a long way to go to get truly extended as it has in this wide trading range all year ($19-20 up to $34-35 or so) and the SPX would have a long way to go if it were going to fall hard at some point be it this year or next year. 

SPX: https://schrts.co/TEZVwGYS

VIX: https://schrts.co/urJkBypV

I'm still of the opinion that the probability is that the market doesn't crash to new lows before year end, though it certainly is not impossible..it would just be very rare without something else major occuring. I think the answer is somewhere in between, meaning it doesn't blast higher either. 

Gaps below are 3,748 and 3,583 either way. First two gaps above are now at 4,071.70 and 4,110.41. 

Lots of things lining up here, demand zone support, pivot point, other indicators. If scaling either way or both, certainly an area to consider objectively for being able to do so or plan otherwise. Great stuff on providing that early today, Steve! I appreciate you

Also thought Matt made a good call with taking some off yesterday as the market could have went either way. This kind of range with so many possibilities is the kind of market when I'm trading, I'll trade in pieces until a more clear risk/reward shot comes into view. As is often discussed here, don't have to be an all or nothing trader, etc. 

BOWL they just made another acquisition. Impressive performance this year for the stock, had no idea. 

Top of demand zone to the nose so far 3,977, nice call Steve 

JPM double upgraded by Morgan Stanley (says a lot as they are major bears in general historically speaking). 

I agree, one of the best run banks and a buy on any major pullbacks into demand zones. 

..continue to watch for when Jamie Dimon buys shares again as a signal. They are resuming buybacks next year as well.