$SPX/$ES Continuation.
$4160s held and we got through this $4180-$4190 inflection today with Nasdaq also ramping.
Two weeks ago on the May 10 recap I said this:
If we break THROUGH that zone, I want to see it retest and hold $4180. So again, my plan is to not BUY the breakout but let it break, come back, then get long.
IF that happens $4220-$4230 are target
This breakout was a long time coming and I am sure people are ecstatic given the continuation move we had today. That retest at $4160 was exactly what was needed and I ended up getting long ES calls light to just above $4200 which was a concern for me as listed last night.
My bull case for today was this as posted in the recap:
$4160-$4150 on ES are support now. So if we breakdown at all and that holds, then the next push through this $4180-$4190 zone creates that move up into $4220.
We traded $4164 and pressed and balanced into hat $4180-$4190 zone before getting close to my target.
These highs make me nervous.
Markets ebb and flow and keeping an even keel on good days/bad days has been key for me.
I could care less about new highs or new lows when trading futures; It’s only zones/areas of interest to me and nothing more.
I take liquidity as a buyer and I provide liquidity as a seller.
Nothing more. Nothing less.
But I still have to look at things through a contextual view.
We have OPEX tomorrow and now the stock market looks great YoY where investors can now relax.
No more calling their advisors to panic.
No more worrying about interest rates because now that we’ve peaked in them they are going to just cut them as fast as they hiked them right?
The Central Banks just start to cut, growth returns in companies with lay-offs and we get a velocity style rally like we saw in 2020 without QE.
That’s how this works. Right?
Now is not the time to become complacent for me.
I think we’re close to risk-off here into next week.
Below is my plan for tomorrow as well as some insights on why this Yen is so important to me right now. I am going to also explain to readers why this breakout on ES only got me long ES calls and not other equities.