ES Daily Plan | August 19, 2024
My preparations and expectations for the upcoming session.
For new followers: The yellow levels highlighted at the bottom left of the chart 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.
Visual Representation
Contextual Analysis
On Friday, the market fully cleaned up the poor structure from the trend day on August 1st, retracing the weakness observed earlier in the month. The daily one-time framing up remains intact as buyers continue the pattern of higher highs and higher lows. In the short-term, I’m closely observing whether buyers can maintain above Thursday’s range, favoring an immediate upside continuation. Failure to do so could lead to two-sided activity within last week’s upper distribution.
In terms of levels, the Smashlevel is at 5572, marking a low volume node (LVN). Holding above this level signals strength, targeting the resistance area between 5601 and 5611, with a final target at 5625 under sustained buying pressure. Failure to hold above 5572 would target Friday’s Smashlevel at 5552. Acceptance below 5552 would open door for a test of the support area between 5530 and 5520, where the high volume node is located.
Levels of Interest
Going into tomorrow's session, I will closely observe the behavior around 5572.
Holding above 5572 would target 5601 / 5611 / 5625
Break and hold below 5572 would target 5552 / 5530 / 5520
Additionally, pay attention to the following VIX levels: 15.62 and 13.98. These levels can provide confirmation of strength or weakness.
Break and hold above 5625 with VIX below 13.98 would confirm strength.
Break and hold below 5520 with VIX above 15.62 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
Make sure to review the Weekly Plan, which provides a broader perspective and highlights key levels of interest to observe in the upcoming week.
Let's Smash! Thank you!