SPX ES SPY Setups for 1/10/24
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The market was kind enough to play out 3 of our trade setups between Globex and and RTH, meaning members in all time zones had a nice trade available to them. I will admit, looking back at the overnight session (after the fact) short setup 2 may have been difficult if you entered prior to the 7:55 EST lower high. I’ll explain a little here, and in the discord how I would have navigated that if anyone would like (I was driving at the time). The overnight short entries:
After closing and trading early Globex above 4796, the Euros did what they do and decided to take short setup 1. After losing 96 there was a quick trap higher back above and sellers stepped in.
For short setup 2 above you can see that there was almost no reaction at 86 on the first touch and didn’t even make it to 4792, failing for a 2nd time at 4:50 the same 5 minute re-offer than capped price at 4am (the 3:20/3:25 am sequence). This would have been a fair entry (only once the 2nd rejection was confirmed). The next and really best entry was the lower high at 7:55 at 85.5.
This brought us into Long setup number 2 at the open. This was difficult to navigate into if you were not in the live discord this morning so no shame if you got chopped up trying to enter.
I had mentioned ahead of time we had stacked demand below so a quick look into the 60s was fine as long as it popped back above 71 (EST-2)
Fortunately, I was back from my meeting in time to navigate us into the long. There was aggressive selling into the lows, which on a gap down is a terrible look for sellers. After the quick trap into the 60s (where I took a starter) I suggested the firming up above 71-73 was constructive and that I would add, risking 69/70.
You can see in the following picture how buyers were bidding 71s, and then 69/70 held for a higher low.
We then held runners, as we knew the trade had range, and it ultimately ran for 30-35 points depending on entry.