SP500 Futures Trading Plan for 4/10/24
Recap: Today’s plan provided the rare opportunity to short the highs and go long the lows. In similar fashion to yesterday, I went short at resistances at 5269 and 5277 after the open today triggered a textbook trade entry. Since I got a good entry, I secured profits in the mid 5250s (yesterday’s POCs) and left a runner which I closed at the next level of 5245.
The market cut through multiple supports lower before stopping at a support from the plan: “Prices continue to trend modestly higher in the pink structure from the 8H chart, which has two lower levels at 5211 and 5198. Each of these can be traded long with a good entry signal…For 5211, I’d like to see the recovery of 5215/16” Bulls delivered a great entry candle there which did recover 5216 and this moved right back up towards 5245 and eventually the open in the runoff period, though I didn’t take it as I’d already hit my one trade. Intraday volatility has returned in recent days, a rarity over the last few weeks.
Balance/Trend: The market balanced late February and well into market before breaking out from balance at 5245 on March 20 and climbing. In recent days, the market has moved back to this level to retest the breakout and moves above or below it have snapped right back.
Analysis: Recent action has been very interesting with a 115 point drop Thursday, an 83 point rally Friday, balance Monday, and then a 65 point selloff today followed by a 60+ point rally into the after hours. All of this action has passed through 5245 at some point and tomorrow’s reaction to CPI should provide some final clarity on whether or not the market can sustain a move out of the old balance area to support continuation higher. Bulls are on solid footing after the late rally today and holding the breakout from balance opens up the possibility of a breakout from the pink channel which gives bulls a shot of getting the Q4 rally back on track.
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