SPX ES SPY Setups for 1/17/24

Yep, the Euros Stole the Setups Again.

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Trading Doggy Style

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RECAP:

Given the long weekend for US cash there’s no real surprise that the best setups played out before cash opened on Tuesday. Because of this I’ll spend a little time providing some education on execution of the NQ trade as it was certainly the highlight of the setups. I’m sure very few of us were awake for the trade but we can still learn from it. Naturally the Europeans took the trade early Monday morning. There were two ways I suggested playing this trade and I’ll cover both options here for your future execution benefit. First the setup and how it played out:

Option 1: Shorting Supply directly. Given supply is a range, I mentioned you would want to watch for ES being into resistance and confirm with price action/order flow. You can see that blindly shorting 17006 on the first test would have led to nothing but a stop out. NQ first entered supply (17006+) at 01:35 AM EST and ES had not yet made it to our area of interest of 4822. Waiting for ES to fail 4822 makes the NQ trade a lot easier to manage. ES rejected hard after a quick sweep of 4822 at 2:15 EST and this is when I would have looked for order flow/price action confirmation on NQ. The lower high on ES below 4822 correlated to the lower high on NQ for a second chance. The ES short setup and ES chart:

Option 2: The safer entry by far, as stated in the setup, was to wait for acceptance back below 16985.25. There was a perfect back test from below at 04:20 EST and 04:30 EST. You can see there was zero sweat to this trade once it played out (the arrow in the first picture).

I may or may not continue to do NQ depending on time and engagement/interest.