SPX ES SPY

Today saw an upside break of the two-day volume balance referenced in last night’s post. The top long setup from last night (that would get us in at the lows with runners for the breakout) played out perfectly. We did a little candle math to identify strong 30 minute demand that one otherwise would not have been able to see on their charts. The range for this demand was 4365.25 to 4372. The overnight low was 4366 and the cash hours low was 4372.25. Depending on entry, up to 30-40 points was available from this setup. The NQ setup from last night’s NQ post yielded a 232 point move with only 4 points risk even if one blindly bought the level. The discussion of the ES trade setup is included below as “candle math” should be studied.

For tomorrow the question is whether or not this breakout will be sustained, as a failure to sustain could lead to a significant move lower.