Hello and welcome to the EquityPulse newsletter! For any new readers, welcome! In this newsletter I discuss levels, scenarios and market analysis for the S&P500 market and issue 5 publications every week! Today, I am bringing you a live replay and commentary of the sell-off today in the e-mini S&P futures. My goal is to give anyone who may be new to trading with the DOM a look at what we look for.
Context
We will be looking at a few bits of price action before the leg down to 4300.
In the video we watch a support level chipped away and flipped resistance in real time at 4319.50.
I discuss how I was looking to position short around this 4319 area for a swing move lower to 4300, and why what I saw on the tape stopped me from entering the trade.
What was not covered in the video:
I chased the short lmao. I was thinking the tape was moving fast, we had not moved much relative to my ultimate target at 4300. For me, this is a classic emotional mistake. I used to chase like a motherfucker and get smoked everytime.
Generally, I don’t trade around random levels for this exact reason and chasing that short and getting a fill at 4314 was exactly that. I like to lean on proven levels like 3419.50 to act as a backstop for my position.
Had I not tilted, the market offered another move back to that 3419.50, and I likely would have survived the 3 point MAE for the ride down.
Anyway, I hope this is helpful!
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