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 continued its downward trajectory, forming a b-shaped profile following an early rejection of the HVN at 5530. The afternoon session established a balance between 5435 and 5412—an area of short-term interest. Notably, this balance was breached during Friday's after-hours session, making it crucial to monitor for continuation or a lack thereof early on.
In terms of levels, the Smashlevel is at 5412. Holding below this area signals weakness, targeting the unfilled daily gap at 5396.75, with a final target at the daily NVPOC at 5467 under sustained selling pressure. Failure to hold below 5412 would target 5435, with a final target at the resistance area between 5472 and 5482 under sustained buying pressure.
Levels of Interest
Going into tomorrow's session, I will closely observe the behavior around 5412.
Break and hold above 5412 would target 5435 / 5472 / 5482
Holding below 5412 would target 5396 / 5367
Additionally, pay attention to the following VIX levels: 24.02 and 20.72. These levels can provide confirmation of strength or weakness.
Break and hold above 5482 with VIX below 20.72 would confirm strength.
Break and hold below 5367 with VIX above 24.02 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.
Away great stuff Thanks
Thanks Smash! Great stuff!