SPX SPY ES for 8/9/24

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

Today ended up being pretty straightforward on $SPY. We saw a ton of selling into the close AND after the close yesterday. Multiple clips of a few thousand lots hit the tape driving price down between 4 and 5. I mentioned in the plan that nobody chooses to sell this kind of volume in an illiquid after hours session and that it therefore looked forced to me. Either this forced selling was done, and was to be taken advantage of by bulls, or the forced selling was not done and things could get ugly today. Our key reference for making this determination was ES 5230.5 yesterday’s spike base. If we traded below the spike base and below the last 2 days relative equal lows then we would be short, potentially for a larger capitulation move. If we could not trade below the spike, then we were trading at the bottom of this current box range and it was a long. The 8:30 data candle opened at 5231 and drove directly higher. Thus the spike down was rejected.

We now closed at the top of the box and therefore will monitor for the exact opposite situation. Either we breakout and hold a breakout, or we become cautious and lean bearish if we get a failed breakout.

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