ES Daily Plan | February 16, 2023

The market remains in a state of consolidation after today's inside day, coiling for a move. PPI data tomorrow premarket.

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Contextual Analysis

NOTE: I'm away from the desk for the next few days, so the daily plans will be provided in a condensed, commentary-free format. Regular, detailed plans will resume on Wednesday, February 22nd.

Today’s session ended with an upward spike. Trading within and above the spike (Acceptance) is a more favorable outcome for buyers, as that confirms the higher prices of the spike. Trading below the spike (Rejection) is a more favorable outcome for sellers as that negates the higher prices of the spike.

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Going into tomorrow's session, I will observe 4154.

• Holding above 4154 would target 4175 / 4192 / 4208

• Break and hold below 4154 would target 4135 / 4125 / 4109

Additionally, pay attention to the following VIX levels: 19.16 and 17.30. These levels can provide confirmation of strength or weakness.

• Break and hold above 4208 with VIX below 17.30 would confirm strength.

• Break and hold below 4109 with VIX above 19.16 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.

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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.

ES Weekly Plan | February 13-17, 2023

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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. Twitter: @smashelito | FAQ: smashelito.com