Market Analysis for 1/15/25
Trade Plan for SPY QQQ CPI day
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The new update for the PharmD_KS indicator has now been published. It now has both sections broken out for NQ and also has a wildcard ticker that you can use for anything that we may be trading. See the Link here: PharmD_KS Indicator
The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to Market Analysis for The Week Ahead
Be sure you have read the Trading Doggy Style Starter Kit. I will be adding to this over time, likely first focusing on example executions. Trading Doggy Style Starter Kit. A recent update has been made with some additional content.
Today’s action on the index was rather wild with some significant back and forth. It is easy to get biased toward one way action with some of these strong moves, but it is important to zoom out. Yesterday’s daily candle on ES (all hours) was a giant hammer and the SPX and SPY 0.00%↑ candles were nearly solid bodied closing back inside Friday’s range. Bulls were positioned quite well to further this attempted reversal. However, taking out yesterday’s high, on its own, is not a reversal. You ended up needing only two pieces of information from the plan for today and that will carry forward into tomorrow.
First, taking out yesterday’s high would bring the daily into a 3-day balance. The top of that balance would be either Friday’s high or today’s high, whichever is higher.
The second piece of information is that bulls would not be in any real trouble unless 5845 was offered from below.
Looking at the chart I think you’ll agree. The top of this range is currently capped at our major 5917-5922 spot, the bottom of the range our major 5811-5813.5 spot, and today’s low was a brief excursion below 5845 (42.5 low of day).
This renders matters quite straight forward for tomorrow:
