Will we get a bounce back to $474.50 today? Jan 3rd

Happy New Year!

Looks like the market is starting with some sort of a correctional wave. Let's keep in mind that a correction is to be expected and SPY going back down to $425 is a likely scenario before the end of the month. However, for day trading, we will have some bullish days and slightly more bearish days.

What kind of a day would it be today? It's difficult to tell but we are starting the day with a few momentum gaps to the upside. We will likely get some bullish action but the general pull of the entire market is down so it will be a difficult day for the bulls. I expect some recovery from overnight selling.

I will update you throughout the day as the trend develops.

Comment:

As expected, the bear strength was way too high today for the entire market. Even though we opened with gaps to the upside, bulls simply couldn't mark up the price. However, we are not at a point where the bulls have a chance of recovering and pushing up the price. I expect a play like this for the rest of the day today.

Comment:

By the way, the reason why I'm expecting the turning is due to my indicator showing me as such. However, the bulls have not taken over yet. We are still under the strength of bears, especially from the higher timeframes. Whatever bullish move we see today will be short-lived and it will be corrected to the downside eventually.

Comment:

We can see the bullishness of the current down cycle. Today the market is on about a 40min cycle. This means, if the bulls hold, we will see the price be pushed to the next peak by 1pm EST.

Comment:

We have 2 potential plays for the rest of the day now.

Comment:

I hope you made some money with my idea today.

Here is my last update for the day.

If you like these updates, please boost and comment. It takes time and focus away from my trading to make these.