Good morning traders!
Tremendous session yesterday even accounting that emini was not able to rally all the way up to 4170s as expected. From 4164 we sold down all the way to 4139. On the way down I was first looking for a dip buy with expectations of a continuation move through highs and to the 4170 level. Calling out the setups live I saw first key area to defend which was 4150 as this had a sizable amount of volume dropping off. Not only that but Manufacturing Index was extremely weak bring me to conclusion that this dip will be bought and this can squeeze into the close. Here is how that went:
Once this setup hit LIS it was time to step back and look for another area where buyers will step in next. Just an hour later we sold down into 4139 marking the low of the session!
For the remainder of the session emini rallied nearly to highs just below my T2 target 4162. A 21 handle zipper covering the 5 handles lost from earlier. Comparing the two trades we locked in 4:1 risk reward on second trade bringing session well into the green.
To add, OVN emini sold down to 4129 bouncing 14 handles which was the long level provided in the substack yesterday. Ever since I said unusual activity was over the market has respected value areas. Extremely potent value areas with little to no budge above VAH or below VAL. See below:
At this point in time I think we want to see much more volume fill in around 4132 - 4148 before moving outside of this value area 4095 - 4192.
Events
New Home Sales, Consumer Confidence & FED Speakers
FED speakers Williams (1035 EDT), Daily (1400 EDT), Mester (1700 EDT)
Earnings
Value Areas
4095 - 4192 / POC 4153
3880 - 4048 / POC 3951
3823 - 3878 / POC 3862
