SPX SPY ES for 7/10/24

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

For SPY 0.00%↑ we have been a bit cautious as the auction gets a bit tired to the upside. We have been looking to buy dips within a prior day’s range with a bit more reluctance initiating longs above a prior day high. As suggested yesterday, we indeed saw another day where bulls failed to sustain bids above a prior day high. Because of the large gap up, our plan to buy dips within yesterday’s range was scrapped and we initially played the overnight box range as it developed. We defined the box at 5633-5640 and identified 5629-31 as a potential spot for a look below and fail. While longs are preferred given bullish context, many of us traded the look ABOVE and fail as well which was rather difficul on the JPOW volatility.

5631 ended up paying twice and was by far the best 2 trades of the day. Zoomed in:

When we get extended to the upside like we are it is generally best, in my opinion, to take 1-2 trades and shut it down for the day. The rest of the day was a bit of a choppy mess to the downside, ultimately leaving an excess high (covered in the free sections linked below at PharmdCapital.com).

Will sellers capitalize on the excess high tomorrow?

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