ES Daily Plan | November 18, 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
Only a breakdown of the balance held the potential for change. After Thursday’s close at its lower extreme, Friday's session saw a downside continuation, marked by a significant true gap lower that breached the prior ATH and the Monthly VWAP at 5925, tagging the MA20 in the process.
As outlined in the Weekly Plan, there is an unfilled gap at 5968.75 on the upside, and another at 5813.50 on the downside. The key question now is what the market will prioritize, making Friday’s range crucial for clues. Short-term control in favor of sellers.
In terms of levels, the Smashlevel is at 5900. Holding below this level would target 5879, with a final target at 5855, marking overnight breakout singles, under sustained selling pressure. Failure to hold below 5900 would open the door for a structure cleanup of Friday’s structure toward the prior ATH and Monthly VWAP at 5925, with a final target at 5942 under sustained buying pressure.
Levels of Interest
Going into tomorrow's session, I will closely observe the behavior around 5900.
Break and hold above 5900 would target 5925 / 5942
Holding below 5900 would target 5879 / 5855
Additionally, pay attention to the following VIX levels: 17.04 and 15.24. These levels can provide confirmation of strength or weakness.
Break and hold above 5942 with VIX below 15.24 would confirm strength.
Break and hold below 5855 with VIX above 17.04 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, buddy! Let's have a great week! NVIDIA in play this week, could drive markets higher or lower.
Thanks Smash!!