Most people are getting whipsawed in this market right now.
This morning SPY opened lower. Then it bounced, even went positive for a stretch. Most traders did not know what to do with that. Were they supposed to buy the bounce or fade it? The market gave mixed signals all session.
I was not confused. The chart told me what was coming before the open.
Here is the bigger picture. We have been inside a downward channel since January.
Price stacks lower highs and lower lows. Same story, week after week. Bearish conditions. Not a bear market, but bearish conditions, meaning violent rallies happen inside this kind of trend. That is what makes them dangerous. They feel like recoveries. They are not.
This week gave us two green days.
People started talking about a bottom. What I saw was a wick looking for resistance at the point of control.
The point of control is a volume profile term. Volume profile tracks how much trading activity happened at each price level.
The point of control is the price where the most volume traded. It acts like a magnet. Price is drawn to it. When price approaches from below, it also acts as a ceiling.
Traders who bought there before are sitting on losses. They want out. That selling pressure pushes price back down.
That is exactly what happened. Price bounced to the point of control and got rejected. We are back inside the channel. The path of least resistance is lower.
I saw the bounce coming this morning. I did not panic out of my bigger picture short position.
I traded the bounce in the call zone, took the profit, and stayed with my read. Both sides of the market in the same session. Timing, precision, patience, execution.
That is what reading structure looks like versus reacting to headlines.
Strong resistance overhead. The setup has not changed. I expect price to wick back into the channel through Monday and I am positioned for it.
What most people call a rally, I call a wick. What most people call a recovery, I call a lower high.
Each bounce in a downtrend reaches a little less than the one before. Bulls try to defend and get rejected. Confidence erodes slowly. That is bearish conditions playing out in real time.
I have been running Game Plan for one year. Trading live every day in front of members. Reading this market in real time, calling the zones, taking the trades. This week is a good example of what that looks like.
To celebrate one year, I am opening the room to the public.
Starting Wednesday April 8, you can trade alongside me live for 72 hours.
I am calling it the 72 Hour Wealth Transformation.
You will see exactly how I read the chart, build the zones, and execute the plan
I would love to see you there.
Rock On,
Voz