Good morning traders!
Before we jump into todays thoughts I want to recap how yesterdays levels went.
The exact setup I was looking for on Monday showed up yesterday but there was no follow through on sell. 3984 HVN was anticipated for potential area for buyers but once I saw how weak tech was going into the day I felt we may begin to open up the range.
Around the same time emini approached 3984, most of tech began to bounce if not already bouncing back to the upper end of its intraday consolidation. What was anticipated on Monday worked out exactly as planned on Tuesday. While this wasn’t what was the setup I was looking for it was a clear warning sign to shorts that we may revert back above 4000 and potentially make way to 4034.
(Mondays notes on 3984 > 4034)
(Tuesdays notes on taking out 4000 LVN and what can come next)
Shorts near VAH and Longs near VAL but I will add on more to what was said in the Telegram (image above). We all know 3880 will not trade in this session so putting our long level there doesn’t make sense. Today I will move our long which was 3984 and bring it down to 3953 as I think if we get below 3990, sellers will start to step in for a move down to 3953. An ideal session today would look like a move up to 4022 then sell through previous day lows to 3953 which I will look for longs. Anytime I expect buyers to step in at some point following selling, shorts will be covered leading into that level so I can give time to position for long. If no areas of interest for longs then I look to soak runners. To add we have another eventless session followed by another tomorrow so I don’t see a move out of current range being sustainable. More than likely the move will revert back above 4000.
Our 4022 level was hit OVN then from that point we made lower highs & lows down to 3880 for 42 handles of sell. As much as I wanted the follow through sell, we saw tech firm up which was at my key 3984 level. I gave the exact reason this may happen and it came out to be EXACTLY what happened. Snap below LVN (3990) with sell into next HVN (3984) then reverting back above 4000 into value near 4030s which is where we had long targets.
OVN emini traded up to 4040 VAH, refer to Value Areas to know which one I’m talking about.
Thoughts for Todays Session
