ES Daily Plan | October 7, 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
During Friday’s session, buyers managed to regain the 5772 level, effectively breaking out of Thursday’s inside day. The upside target involved filling Tuesday’s A-period excess towards the resistance area between 5799 and 5809, which was ultimately achieved.
As outlined in the Weekly Plan, the market remains balanced, characterized by two-sided activity as it awaits additional market-generated information to guide its next move. Balance guidelines apply, with immediate focus on monitoring Friday’s closing strength.
In terms of levels, the Smashlevel (Pivot) is at 5798. Holding above this level signals strength, targeting both the RTH and overnight all-time highs at 5827.25 and 5830, respectively. Acceptance above 5830, indicating a successful balance breakout would target 5848. Failure to hold above 5798 would target Friday’s VPOC at 5772, with a final target at 5753 under sustained selling pressure.
Levels of Interest
Going into tomorrow's session, I will closely observe the behavior around 5798.
Holding above 5798 would target 5827-30 / 5848
Break and hold below 5798 would target 5772 / 5753
Additionally, pay attention to the following VIX levels: 20.54 and 17.86. These levels can provide confirmation of strength or weakness.
Break and hold above 5848 with VIX below 17.86 would confirm strength.
Break and hold below 5753 with VIX above 20.54 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.
