Hello and welcome to another installment of my daily e-mini trade plan. For any new readers, welcome! In this newsletter I discuss levels, scenarios and market analysis for the S&P500 market.
I noticed that I have been sending chats to all subscribers since the feature has been implemented. Starting tomorrow all updates sent in the Substack chat will be exclusive to paying subscribers.
What a breathe of fresh air today was. We saw a great session that presented multiple trading opportunities. Lets dive in.
Last night I outlined a theoretical scenario in NQ where I was expecting if we opened and moved down into 13000, this could be a failed breakout from an inside day and target the top of range at 13180-13200 area.
Well what we actually saw was the same scenario but in the opposite direction. Following the 5% CPI print, the indexes climbed higher only to give up the gains leading up to the open.
I sent out a chat message saying that I was expecting a pullback into 4130-4140 area to see what was there
This played out great. Both indexes cratered at the open and ES hit my lower end target 4124 support.
And, as outlined in the chat, we expected this area to offer support for a bounce which it did.
At this point we bounced about 30 points off my support level into 4156
I sent my third and final chat message warning that we were now at a key inflection at 4156. I thought if we tookout this level we could see an explosive upside move towards 4200.
This move did not come but the warning of 4156 resistance was timley as shortly after the message was sent, we failed to overtake this level after 3 tests. The index turned back down and eventually made new lows to settle the session at 4117.
I am expecting momentum will continue to build coming out of this recent slump in trading activity.
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