Market Analysis and Trades for 5/20
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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 5/17
Today sellers were able to take out last week’s low. The weekly plan included some extended scenario analysis to aid us in determining if this is a bear trap or if bearish continuation is likely. We have NVDA earnings after the bell and it seems like every NVDA 0.00%↑ earnings day for the last 3 years has been ultra trappy so bias will need to remain in check until we have resolution. Tonight’s plan builds on some of the scenario analysis from the weekly plan to help us to identify which side is being trapped tomorrow.
For today, once again money was available to be made on both sides. Our short setup happened to play out first, but there were plenty of longs to be had as well. I liked the short on NQ better than the short on ES personally:
After the early overnight look above and fail (LAAF) of 29114-29135 it was resistance all day.
Last week’s low (28742 down there) was taken out, and we see that sellers covered quite a bit before leaning back in at 29114-29135.
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