SPX Trade Plan — January 8, 2026
Yesterday the markets showed they can’t just always go up—and frankly, if you’re a medium-term bull, you shouldn’t want them to. In yesterday’s note, when SPX was trading around 6950, I called for a healthy pullback down to 6920 as required fuel for the bull market. That is exactly what we got; the index hit an all-time high early in the session before reversing to close near 6921. Now the question is whether bulls hold control or bears take over.
The macro backdrop remains a tug-of-war. While the ISM Services PMI showed robust expansion at 54.4, the cooling labor market—with job openings hitting a 14-month low—is forcing investors to weigh strong corporate profits against a slowing economy. For today’s trading, we want to see 6900 hold as the lower-bound support; if that level is lost, we could see a rapid sell-off eventually landing us in the 6815–6825 zone.
We are looking for SPX to find its footing above 6900. The technical backdrop remains moderately bullish, but the failure to follow through after yesterday’s new highs suggests that additional sideways consolidation may be needed.
GEX Profile
Execution Levels
Long Plan
- Primary Focus: Looking for footing above 6900, including a potential dip to 6894.
- Key Targets: 6910, 6914, 6920, 6924, 6932, 6937, 6940, 6947, 6954.
- Reclaim: A reclaim of 6932 sets up a long to 6950 with 6937, 6940, and 6947 as interim levels.
- Continuation: Through 6954 targets 6964, 6971, 6975, and 6980.
- Stretch: Through 6980 sets up a push toward 7000, with a squeeze max high of 7035.
Short Plan
- Breakdown: A break below 6894 targets 6875, with intermediate levels at 6888, 6884, and 6881.
- Flush: A failure of 6875 (structural support) opens the door to 6868, 6862, 6856, 6852, 6849, and 6844.
- Extreme: A break below 6844 sets up a move toward 6837 and 6826.
- Short Pops: Look for weakness around 6924–6937. On a break below 6900, look to short pops back to that level.