SPX SPY ES for 8/7/24

Link for Discord Access: Join us. Be sure to check your junk folder.

The weekly plan should be read and the weekly video should be watched prior to reading this post. Weekly Plan

My friend

Capital Flows

and I did a Spaces on X today and it is recorded. I would encourage everyone to check out his Substack and give the spaces a listen. I’ve included a link HERE

In last night’s plan it was suggested that the hold of 5122 and reclaim of 5185 implied a move to the key 5305-5308 spot with the potential for 5381-85. We tested it overnight and it (5305.5) was the overnight high. Buyers had rallied 185 handles off Mondays low and ran out of steam. They ideally needed an open above 5330s to trigger a squeeze and were unable to do so. Instead, futures sold off the rest of the night into the open and then sellers ran out of steam just below the overnight low at 5221.75. Buyers then rallied back up 120 handles to today’s high. That is an awful lot of lifting to do in 2 days and once price hit Friday’s VAL, we saw our first real seller come in to defend and left Friday’s buyers trapped. Some of the afternoon selling was very likely trapped buyers from Friday piling on to exit. 5380s are still on the table but bulls are now under some pressure. If I am looking be long for a trip to 5380s, today’s afternoon sell isn’t necessarily a bad thing. If we can build out a box over a few days that breaks to the upside, then a multi-day box break could be just what buyers need to gain the thrust for the 5380s and potentially more. On the flip side, sellers now have the opportunity to continue this downtrend directly or with their own downside box break. Tomorrow is absolutely critical in terms of the next move.

We will continue to take things day by day in terms of swing positions until we have more clarity, with some good day trade setups for 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