SPX ES SPY Plan for 11/7

Warning: Contains a non-trivial amount of Black Magic

The post from Saturday proposed the possibility that the market was possibly looking for balance after an early clue on Friday. Today we got an inside day forming a volume balance, though the daily remains OTFU. In spite of some aggressive selling at times during the day, value remained fully within Friday’s range and the VAL actually closed much higher than Friday.

In spite of some choppy action at times, the index was kind enough to ultimately stick to the script it had been provided from Saturday’s post.

The overnight session quickly traded lower to our 4374.5 level (4374 the overnight low) giving 10+ points to the 4384.5-87.5 spot. The open saw a rather wild opening stick and immediately set up the look above and fail of 4384.5-87.5 short setup which initially targeted gap fill and then full value area traverse to 4368-70. After completing the value traverse short, the value traverse long setup played out on the look below and fail of 4368-70, targeting 4384.5-87.5 range. This last trade featured a beautiful pullback to exactly 4374.5 for a late entry long into the close.

Clip from Saturday’s post for today:

The objective for sellers tomorrow will be to take out and find traction below today’s lows and Friday’s lows, while buyers seek to take out and gain traction above Today and Friday’s highs. Today’s inside day offers some juicy setups for tomorrow, detailed below.