ES Daily Plan | December 27, 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
For Tuesday's shortened session, the primary focus was on Monday's closing strength, highlighted by the upward spike in the M-period. Acceptance of these higher prices opened the door for further cleanup of the poor structure left from last Wednesday's multi-distribution trend day. Tuesday's session opened with a true gap up, which was promptly filled, followed by a continuation to the upside. The K-period single prints from 12/18 were completely filled, and the J-period single prints were partially filled in the process.
Today's session kicked off by cleaning the poor structure from Tuesday's shortened session, with responsive buyers emerging within the B-period single prints, before resuming the week's primary objective of cleaning last week's structure. Buyers aim to complete this process by filling the breakdown single prints from the J-period, with their most favorable outcome being acceptance back into the upper distribution. Conversely, the sellers' most favorable outcome would be acceptance back within Tuesday’s initial balance, below 6071.
In terms of levels, the Smashlevel is at 6090. Holding above this level signals strength, targeting the breakdown singles at 6120, with a final target at the daily NVPOC at 6136 under sustained buying pressure. Failure to hold above 6090 would target 6071, with a final target at 6048 under sustained selling pressure.
Levels of Interest
Going into tomorrow's session, I will closely observe the behavior around 6090.
Holding above 6090 would target 6104 / 6120 / 6136
Break and hold below 6090 would target 6071 / 6048
Additionally, pay attention to the following VIX levels: 15.36 and 14.10. These levels can provide confirmation of strength or weakness.
Break and hold above 6136 with VIX below 14.10 would confirm strength.
Break and hold below 6048 with VIX above 15.36 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.
Thanks Smash! Hopefully we get better PA today.
Thank you buddy! Had a few losses but recovered mid afternoon.