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.
Also, I recently released my first educational post and I am very excited to share it with you. I was so excited to share with readers that I released it early and plan to continue to add to it over the coming days. Check it out here.
The plan shared Thursday night for the Friday session was geared around 4110-20 area, being bullish on an open above and bearish on an open below.
Coming into the US session, I didn’t think it was appropriate to remain with this plan given the overnight auction.
Before the open, I shared ES 4084 and NQ 13080 support, and had a bullish outlook as long as we remained above this level targeting 4110-20.
This turned out to be a good plan and 13080 and ES 4090 acted as the low of day on Friday.
After we traded up to this 4120 level, it was apparent to me that we were seeing a familiar melt up pattern. I sent another message in the chat saying I was not looking for shorts here at 4120 only pullbacks to get long to continue the slow grind higher.
This turned out to be a good call as well since this theme continued and we broke 20 points higher to 4142 in the last hour!
Does anyone know how to view the timestamps on the Substack chat? My timing was pretty good on these updates.
Last week saw an impressive rally in the market with ES up about 150 points or 3.3% and NQ up about 400 points or 3%.
However let us note the volume right off the bat; It was ultralight.
We’re approaching the previous swing highs on ES at 4200, and we’ve blown through previous swing highs on NQ.
And at first glance, it would appear we are headed back towards the swing highs from last fall.
The economic calendar is pretty light this week with the key event being NFP and the unemployment rate on Friday. This is similar to last week as we had little relevant economic data coming out until Friday. Last Sunday I thought this was going to be good and give the market a chance for some natural price discovery but instead we saw compressed ranges with little to no trading opportunities.
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