6/12: Daily Recap, Outlook, and Trading Plan
Recap
As mentioned in previous newsletters, we have observed a solid day-of-week tendency in ES, with weakness from Monday to Wednesday, followed by Thursday and Friday squeezes. This pattern has held up for 8 of the last 10 weeks, including last Friday. However, last week we expected this to happen, and with both CPI and FOMC, we anticipate one of the most volatile weeks of 2023.
The Markets Overnight
🌏 Asia: Up
🌍 Europe: Up
🌎 US Index Futures: Up
🛢 Crude Oil: Down a lot
💵 Dollar: Down slightly
🧐 Yields: Down
🔮 Crypto: Down slightly
World Headline
Markets look ahead to tomorrow’s CPI inflation report and Wednesday’s FOMC meeting.
Key Structures
The core setup we have been observing is the failed breakdown, which preceded the 60+ point Thursday/Friday squeeze. This setup is essential to learn, as it precedes almost all major moves.
Support Levels
4344-42 (major), 4338, 4327 (major), 4315-18 (major), 4303, 4290-85 (major), 4265-70 (major), 4258, 4248 (major), 4236 (major)
Resistance Levels
4353-55, 4366-68 (Major), 4380-85 (major), 4391, 4400 (major), 4407, 4415, 4431-33 (major), 4447 (major), 4454, 4464, 4483, 4491 (major)
Trading Plan
📈 Bulls will generally want to hold 4344-42 and base above, with 4327 being the lowest on any spikes down. This will set up a retest of 4366-68. Choppy action is likely today, as always. A 4315 fail would be considered the trigger down to 4285.
📉 A 4315 fail would be considered the trigger down to 4285 for the bears.
Wrap Up
As we approach one of the most volatile weeks of 2023, it is crucial to put away any predicting mindset and fluidly react to the levels and setups. Stay sharp!
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
As mentioned in previous newsletters, we have observed a solid day-of-week tendency in ES, with weakness from Monday to Wednesday, followed by Thursday and Friday squeezes. This pattern has held up for 8 of the last 10 weeks, including last Friday. However, last week we expected this to happen, and with both CPI and FOMC, we anticipate one of the most volatile weeks of 2023.
The Markets Overnight
🌏 Asia: Up
🌍 Europe: Up
🌎 US Index Futures: Up
🛢 Crude Oil: Down a lot
💵 Dollar: Down slightly
🧐 Yields: Down
🔮 Crypto: Down slightly
World Headline
Markets look ahead to tomorrow’s CPI inflation report and Wednesday’s FOMC meeting.
Key Structures
The core setup we have been observing is the failed breakdown, which preceded the 60+ point Thursday/Friday squeeze. This setup is essential to learn, as it precedes almost all major moves.
Support Levels
4344-42 (major), 4338, 4327 (major), 4315-18 (major), 4303, 4290-85 (major), 4265-70 (major), 4258, 4248 (major), 4236 (major)
Resistance Levels
4353-55, 4366-68 (Major), 4380-85 (major), 4391, 4400 (major), 4407, 4415, 4431-33 (major), 4447 (major), 4454, 4464, 4483, 4491 (major)
Trading Plan
📈 Bulls will generally want to hold 4344-42 and base above, with 4327 being the lowest on any spikes down. This will set up a retest of 4366-68. Choppy action is likely today, as always. A 4315 fail would be considered the trigger down to 4285.
📉 A 4315 fail would be considered the trigger down to 4285 for the bears.
Wrap Up
As we approach one of the most volatile weeks of 2023, it is crucial to put away any predicting mindset and fluidly react to the levels and setups. Stay sharp!
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
