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The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Market Analysis for the Week of 9/14
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Thursday had left behind some poor structure including multiple sets of singles prints and a closing spike (see the starter kit free section if you aren’t familiar with these terms). The market will often (not always) embark on what I call a “structure repair mission” overnight. In this case that just meant an opportunity for an excellent dip buy. From Thursday night’s plan:
The market was kind enough to deliver a long setup on both NQ and ES:
This setup played out both in the Asia session and European session. Notice how prior attempts off the 23997.5-24004 spot simply had no lift. Once 23997.5 was properly swept, bulls had to strength to lift to the upside target of 24040-24054. That spot (again) rejected strongly, leading to the Europe session liquidation and low at precisely 23969 which was derived from supply and demand at price with some very nice meme confluence. The 23997.5-24004 then held during cash session following the look above and fail of 24040-24054 and sellers were properly dead once that spot was lifted.
The ES trade played out nicely as well. Like NQ, ES had some “demand at price” sitting right below the key 6579-6582 weekly level which also represented the first set of single prints being filled. This (and the NQ trade) is a perfect example of my style. I am specifically looking for confluence across concepts (supply and demand at price with volume/market profile in this case) to provide such traps as they are incredibly powerful. This target 6595 (Thursday’s spike base) and high which was met and exceeded
When the market is in a clean uptrend, there are a lot of people out there that think trading extreme leverage of futures and options is as simple as “just buy bro.” I suspect many of those same people got destroyed in the chop on Friday. Understanding where, when and why to “just buy bro” can provide for some very easy and sweat free trades whether planned ahead of time or provided real time in Discord
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