Gap Down: Time to Cash In! | SPX Market Analysis 31st Oct 2024

Ahoy there Trader! ‍‍⚓️

It’s Phil…

We’re witnessing an unexpected but delightful bearish move in pre-market futures, which might just open the treasure chest of profit opportunities!


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An unexpected but most welcome bearish move is underway in the pre-market futures, currently down around 50 points on ES futures. If this holds, we could see a nice gap down, pushing prices outside the well-established range.

  • Bearish Income Swings: Should hit their profit targets near the open.
  • Key Question: Will this breakout continue, or will we retreat back into the range again?

Time, as always, will tell all! For now, I’m eagerly anticipating cashing in some profits at the open and assessing this breakout for a potential continuation setup.


Fun Fact

Did you know that the stock market has its own “Black Monday”? On October 19, 1987, the market crashed by 22% in a single day—still the largest one-day percentage drop in history!

The 1987 crash, known as Black Monday, stunned investors and led to significant changes in how stock markets operate. Trading systems and rules were revamped to prevent such drastic drops from happening again. It serves as a reminder that markets can be unpredictable, but with proper strategies, traders can weather the storms!


 

Happy trading,

Phil

Less Brain More Gain

…and may your trades be smoother than a cashmere codpiece

 


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