SPX SPY ES for 5/20/24

The full weekly plan and commentary should be reviewed ahead of this post and can be seen HERE.

Friday put in a nice excess low across all indices. If you are not familiar with what a spike is, here is a free post on it EXCESS. It’s a bit over the top with my attempt at humor but it should make sense to anyone not familiar with the concept.

The trade plan for Friday was to generally favor shorts if price remained trapped below 5323.5 until we saw a reaction in the 5308-10 where I would look to add some longer dated call exposure. Because of the way it played out, many of us (myself included) took day trade longs as well. After consolidating all night and all day in the 15-25 range (a box), the index finally broke to 5305.75 (a full extension of the box) and we got our long entry. This is a fantastic example of how price going lower need not be bearish. It very often is quite the opposite, and a liquidation break can strengthen the market to go higher.

Seats are once again available for Trading Doggy Style school. Learn more here: Learn it For Yourself

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.

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.