ES Daily Plan | April 9, 2024
Buyers were active below 5247, while above 5263, selling activity was observed. This resulted in a rather uneventful session, marking the second consecutive inside day.
Visual Representation
For new followers, the yellow levels highlighted at the bottom are the primary levels that I focus on intraday. My strategy for preventing impulsive decisions at unfavorable locations involves following a simple yet effective rule of exercising caution when initiating trades outside of the yellow levels. This implies that I am cautious chasing longs above the final yellow upside target and shorts below the final yellow downside target. It is crucial to understand that refraining from chasing a trade is not an automatic invitation to initiate a trade in the opposite direction.
Contextual Analysis
Unchanged context, no need for extensive analysis. The main focus today was on the highlighted battleground ranging from 5247 to 5263. Buyers were active below 5247, while above 5263, selling activity was observed. This resulted in a rather uneventful session, marking the second consecutive inside day, indicating that the market is in a holding pattern, coiling for a directional move. CPI is scheduled for Wednesday, with PPI on Thursday, serving as a potential catalyst.
Levels of interest on the chart remain unchanged, reflecting the unchanged context.
“Buyers aim to establish value above the highlighted battleground, targeting a full cleanup of Thursday’s structure toward 5293. On the flip side, sellers aim to maintain downside pressure by building value below, targeting Friday’s lows.”
For tomorrow, the Smashlevel (Pivot) is 5247, representing FOMC breakout point. Holding above 5247 would target the inside week low of 5263. Acceptance above 5263 would target fills of the remaining poor structure from Thursday toward 5293. Break and hold below 5247 would target Friday’s IB high at 5231, coinciding with a structural anomaly. Acceptance within Friday’s IB would target its opening level at 5211.
Levels of Interest
Going into tomorrow's session, I will observe 5247.
Holding above 5247 would target 5263 / 5293
Break and hold below 5247 would target 5231 / 5211
Additionally, pay attention to the following VIX levels: 15.94 and 14.40. These levels can provide confirmation of strength or weakness.
Break and hold above 5293 with VIX below 14.40 would confirm strength.
Break and hold below 5211 with VIX above 15.94 would confirm weakness.
Overall, it's important to exercise caution when trading outside of the highlighted yellow levels. A non-cooperative VIX may suggest possible reversals i.e trade setups.
Weekly Plan
Be sure to check out the Weekly Plan, which provides a broader perspective and highlights significant levels of interest to watch in the coming week.
Disclaimer: Futures and options trading involves a high level of risk, with the potential for substantial losses. The information provided in this newsletter is for informational purposes only and is not intended to be a trade recommendation. It is the responsibility of the reader to make their own investment decisions and they should seek the advice of a qualified securities professional before making any investments. The owners/authors of this newsletter are not certified as registered financial professionals or investment advisers.
Smash levels respected exactly!!!! Made a few dollars! Thanks!😂
SPX meandering around 5200