ES Daily Plan | February 10, 2025
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 successfully cleaned up the highlighted poor structure from the January 31st double distribution profile. However, failure to establish acceptance within its upper distribution resulted in a b-shaped double distribution down, signaling long liquidation that, in turn, filled Wednesday’s poor structure.
The market remains within a massive balance area, and balanced markets tend to resolve poor structure, unlike trending markets, where structural deficiencies can remain unresolved for extended periods. The question now is: which area will be targeted next? The immediate focus is on monitoring whether sellers can sustain the downside momentum from Friday.
In terms of levels, the Smashlevel is at 6045, marking the lower end of Friday’s range. Holding above this level would target Friday’s afternoon rally high at 6075, with a final target at the resistance area between 6097 and 6107 under sustained buying pressure. Conversely, failure to hold above 6045 would target the High Volume Node (HVN) at 6025, with a final target at 6004 under sustained selling pressure—a crucial level for buyers to defend.
Levels of Interest
Going into tomorrow's session, I will closely observe the behavior around 6045.
Holding above 6045 would target 6075 / 6097 / 6107
Break and hold below 6045 would target 6025 / 6004
Additionally, pay attention to the following VIX levels: 17.48 and 15.60. These levels can provide confirmation of strength or weakness.
Break and hold above 6107 with VIX below 15.60 would confirm strength.
Break and hold below 6004 with VIX above 17.48 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.
Thank you! Let's smash this week!
Thank you!