SPX SPY ES for 6/12/24

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

In last nights free section caution was issued about initiating new longs in the 70s as of last night. The ES overnight high was 5374. This fail triggered weakness and pressured late buyers to liquidate which was a known risk:

On top of this selling pressure we had some hedging flows come in overnight and at the open ahead of tomorrow’s events. When this is playing out we need to be patient buying dips and look for a strong reaction at a strong level. We had been monitoring the 5331-35 range as a key weekly spot which had the potential for a nice cascading long setup.

We can see how this corresponded to the SPX box backtest here:

As we came in for the back test it was appropriate to be covering shorts and looking for long

Low of day on ES was 34.5 and the cascading long played out to completion.

As most days are balance days it is rare that I urge members to consider holding runners, but todays setup was very clear and clean

Tomorrow we have CPI and FOMC so anything goes and it should be rather volatile.

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