Good morning traders!
Yesterday was an okay session as it took all day for S&P to sell through lows.
As per Weekly Outlook we expected sellers to emerge early on at 4060s. This was the OVN high trading around 4062 for a move lower of ~14 handles.
At the open 4067 was struggling to hold market lower as weakness in $DXY was over powering yet stocks were making legs lower!
This was first warning sign that shorts may hit LIS.
From here $DXY made fresh lows with force but the tables turned on S&P500 as we began a grinding sell to LOD. Short around 4067 were able to lock in for nearly 20 handles into the close for a solid recovery into the session.
Starting off the week green but not by much so today will be an important session so we can get some extra risk added onto the week.
Once up 20-30 handles I will be very comfortable for the remainder of the week as all my trades have been paid for.
These small 8-12 handle stops will be small once we get some direction and better yet being able to manage positions to get out B/E rather than taking even the slightest losses. The moment I became ok with taking off at B/E for nothing is when I sliced down many of my losses and started taking off size in meat of the move.
We have some events today so there could be volatility today outside of yesterdays range.
Don’t forget to tune into the video to hear what I have to say about overall market structure!
Make sure to also read this as this is detrimental to understanding what I do, Volume Profile is the soul of my trading.
Nearly every stock is at the swing level that was provided in the substack last week, go check it out:
