SPX SPY ES for 4/10/24

Will CPI Make or Break the Market?

The first 5 parts in my free series explaining some basic profile concepts is now available at www.pharmdcapital.com. Click PharmDCapital This section and other free material will be added to over time. Scroll down to the “Want a Taste” section to read it.

The full weekly plan and commentary should be reviewed ahead of this post and can be seen HERE. This includes the 3-week box setup that could present some amazing and large trades this week.

The trade we had been stalking since the weekend finally set up perfectly today. It was a trade setup for Monday, and I left it there for today. It couldn’t have played out better and resolved for a 60-handle trade in a little more than an hour.

At 8:13 EST on the way up I suggested that the premarket squeeze was fishy (5268 at the time) and that longs should be trimmed and eyes open (for the short). At 9:06 it was reiterated that it was a short unless buyers proved an ability to drive through 72.5 with continuation.

The open saw a quick wick above 5272.5 and hard rejection, followed by a clean back test and fail from below. The downside accelerated once 5267 was offered from below.

We took profits on the way down, more at low of day, and then just kept trailing stops in place for any remaining runners on the short. The late day move certainly looked bullish, but was it? We have CPI tomorrow, so tonight we will discuss whether or not this will be a continuation short or if the swing low is in.

To learn more about how I trade, see the post “What is Trading Doggy Style” Here

-For those that trade SPY/SPX, there is an ES to SPY/SPX converter in Tradingview. See announcements in the Discord.

Discord Instructions for access (free for paid Substack subscribers) are HERE.