SPX SPY ES for 5/23/24
The full weekly plan and commentary should be reviewed ahead of this post and can be seen HERE.
Today was a great example of how we often need to be flexible in trading. Our bias was and has been for longs into the day. However, the look above and fail of 5349 overnight triggered weakness overnight. Sellers began to run out of steam just before 8am EST where trimming shorts was suggested. At 8:38 it became clear that sellers were done, and it was a long into the open:
I hadn’t personally taken a short in days and our plans have been very long biased. However, we can’t ignore when a seller of meaningful size and determination presents near range highs. At 10:01 I identified the big seller and suggested that I would be looking to short with him. He didn’t gain a whole lot of traction until the look above and fail of the IB high (5344). Many recent days I haven’t even bothered considering this trade, but with the presence of this seller it was worth calling out the setup ahead of time.
That short, which initially developed painfully slowly, resolved into a 12 handle liquidation (which we always cover a good portion), and then a look below and fail long for those inclined.
The seller defended a lower high below the IB high and we finally got a serious liquidation that was worth looking for longs:
I suggested that holding runners into NVDA 0.00%↑ ER was reasonable with a stop in place as long as profits had been taken into 5330
The high after NVDA ER was 5347 nearly 40 handles for those that held runners.
At this point, SPY 0.00%↑ is still in range (a box). Box rules apply
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-For those that trade SPY/SPX, there is an ES to SPY/SPX converter in Tradingview. See announcements in the Discord.