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ES Daily Plan | February 22, 2023
The session ended with an imbalanced profile to the downside. Observe the range of the M-period short-term, as we had very aggressive buying during that period.
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.
VIX was in “weakness-mode” throughout the session and when the last intraday downside target of 4040 was reached and exceeded, it wasn’t favorable to attempt to fade today’s downside move.On top of that, the 3-week balance was breached to the downside, which brings the weekly into one time framing down mode. Today’s profile is imbalanced to the downside. Sellers want to see a continuation to the downside to resolve this imbalanced profile, which would target the Weekly Extreme Low 3970. Buyers main objective is to end the daily one time framing down to end this directional move. Observe the range of the M-period short-term, as we had very aggressive buying during that period.
Going into tomorrow's session, I will observe 4015.
Holding above 4015 would target 4030 / 4050
Break and hold below 4015 would target 3995 / 3970 / 3956
Additionally, pay attention to the following VIX levels: 24.16 and 21.58. These levels can provide confirmation of strength or weakness.
Break and hold above 4050 with VIX below 21.58 would confirm strength.
Break and hold below 3956 with VIX above 24.16 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.
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.
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