SPY/ES for 9/5
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SPY 0.00%↑ didn’t do a whole lot today which didn’t come as a surprise. Yesterday’s low (and now today’s) sits at a critical location and 5530 on ES is a high volume node so expecting a pause here made sense.
The overnight action saw yesterday’s low taken out but sellers didn’t gain much traction. This gave buyers an opportunity to stage a rally attempt. However, both NQ and ES ran into some stiff resistance and the indices remained somewhat weak thereafter.
Though most of the day was pretty boring and choppy there was a very nice late day reversion trade to be had. If you’ve read my series below on volume profile the premise of the trade and the target of 5540 should be readily understood. I was looking for a late day liquidation of longs to take price below value for the day, and then to take a long back to the developing VPOC. You can review the premise, execution, and target below for learning purposes. The trade was posted just after low of day 5515 printed.
We have a decent amount of data tomorrow and bulls still have a lot of work to do to negate this recent weakness.
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