$SPY/$ES RESET BUT IS THIS A BUY?

Market Recap & Wednesday Plan.

Well, PMI was a non-event and so was the housing data that came out which is a bit of a shame because I was looking for some action.

But futures trading really is a lot like poker; you get a hand, bet, fold, check then repeat.

So I don’t mind waiting this out.

This is what I said yesterday:

We closed so/so but this PMI data will decide whether we end up dropping down to $4140 area or breaking out to that zone you see above.

$4205 or below is a light short into $4160 then the $4130-$4140 area. I’ll probably short that small but not get aggressive. Just to that zone first.

We opened below that and traded down to $4153 before finding support/absorption of price.

So that was my plan, to short. But here is the issue:

I don’t trade after 11:30/11:45 which is when Europe closes. So even thought it broke I did not get short and I also didn’t get long.

This is the same thing I’ve taught Mike, a trader who I’ve mentored this past year and he pulled down an easy $2K yesterday (he took the rest of the week off as he is in Brazil on vacation).

Last week we broke out and I was not really buying this saying this is the last “10% of the move” - it’s the same reason I have not been long actual futures but small ES calls as a way to play the move higher.

With this breakdown of price is this just a reset to trade back into that zone I’ve mentioned or do we start to breakdown?

I am going to go over that, explain my trading hours (and why they are important to me), why I choose not to get long and then get into the full plan for ES/SPY tomorrow for subscribers below.