ES Daily Plan | December 3, 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
Quick update today, as the context remains unchanged following an exceptionally quiet session. During the overnight session, the market cleaned up some of Friday’s structure but returned above the prior ATH at 6045 before the RTH open. The VIX came close to testing its resistance level of 14.18 overnight, reaching a high of 14.10. The RTH session traded in a shallow 19-handle range, with initial struggles to gain traction above Friday’s high during the morning. The afternoon session saw a grind higher, with only the J-period offering a pullback for patient buyers to enter. I’ve merged the last two sessions, highlighting the current P-shaped imbalance to the upside with a poor high, which is expected to be cleaned up as buyers remain in control.
An exceptionally quiet session today, as the market accepts Friday’s move, establishing value above 6045. Immediate attention is on the previous week’s high and today’s afternoon pullback low to gauge short-term strength or weakness.
In terms of levels, the Smashlevel is at 6060/6056. Holding above this area signals strength, targeting 6074, with a final target at 6095 under sustained buying pressure. Failure to hold above 6056 would open the door for a test of 6045, and the support area between 6025 and 6015 under sustained selling pressure.
Levels of Interest
Going into tomorrow's session, I will closely observe the behavior around 6060/6056.
Holding above 6060 would target 6074 / 6095
Break and hold below 6056 would target 6045 / 6025 / 6015
Additionally, pay attention to the following VIX levels: 14.02 and 12.68. These levels can provide confirmation of strength or weakness.
Break and hold above 6095 with VIX below 12.68 would confirm strength.
Break and hold below 6015 with VIX above 14.02 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
Thank you! Amazing 6045!