Market Analysis and Trades for 5/12
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The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. It can be found here Market Analysis for the Week of 5/10
In the plan for today on ES we were looking for a look below and fail (LBAF) or 7405-7408 and even Friday’s RTH low which was likely to bullish engulf once back above 7405-7408. The LBAF of Friday’s RTH low was active early in the Sunday night session and after some back and forth 7405-7408 was reclaimed and held most of the night. The opening drive was ferocious and Friday’s high was taken within the first 15 minutes.
It was difficult to get into this move if not in already, but 7421.5 offered a nice pullback entry which was identified in the Discord ahead of time.
NQ was far cleaner overnight. We were looking for buyers to be responsive on dips below 29256 down into the weekly 218-238 level. There were three entries available for this trade with two overnight and one during the cash session (which happened to be a LBAF the IB low as well).
We did see our first decent seller in the NQ tape today quite literally since the low. Bulls remain in control of all time frames and we have CPI tomorrow. Perhaps this was just some profit taking ahead of the print, but we’ll have a close eye on a potential change in character.
I had no plans to be short today but ended up short NQ twice on the back of this seller. Shorts are rentals until proven otherwise but sometimes sufficient size hits the tape that nothing else really matters.
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