Market Analysis and Trades for 2/21

A Warning Shot or Just a Trap?

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The weekly post and for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to Market Analysis for The Week Ahead

We have been prepared for yesterday’s SPX 6145.66 test since the weekend. The only question was (and still is) whether or not this spot produces a major swing high or if today was just a dip to get long for new highs. From the weekly plan, which I aim to keep quite objective when I’m laying out moves days ahead of time:

We got the expected reaction at 6145 SPX (6160s ES)

And we can see the ES 6104-6107.25 spot held nicely. This is a critical spot which should be carried forward.

We longed it today in the Discord which has (thus far) resolved for 30+ handles. If bulls get the reclaims needed then it is worth holding. It certainly may look like sellers dropped the ball again today, but I believe there are other dynamics at play that could keep the door open for a continued sell.

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