1/8 Trade Plan
SPY
The Market Makers (MMs) weekly implied move is $6.11
Upper range = 474.03
Lower range = 461.81
Here is the 1D chart with the 10, 20, 50, and 200 SMA’s (in order from top to bottom), notice how we have pulled back below the 10 and 20 with a long way down until the 50. If the bulls can reclaim these it would be pretty bullish, I think. Are we starting to see some signs of weakness?
If you review other tickers, we are looking at very similar setups.
On the monthly profile, we are still trading inside of December’s value area. The volume below us is pretty thin. There is a chance that we could potentially fill some of this in from the 467-460 area. If this area holds on the other hand, we could make it back to the POC-VAH.
On the weekly profile we are coming down into that 464.60 area we started mentioning two weeks ago. Last week’s VAL sits at 467.52 and the VAH is at 471.06 this ladies and gentlemen, is the chop zone. Above 471.06 I want to target the 474.50-476.50 area again. Below 467.52 I still want to see 464.60, under this opens the door to 458.43.
For me personally I want to see either 464.60 or 471.06 before I make a trade. I want to see if these levels offer support/resistance. Above 471 I want to be bullish, if 467.52 fails I want to target 464.60 and if 464.60 holds I want to target 470 again.
If 464.60 fails I want to target 460-458.40.
QQQ
We are getting close to testing December’s VAL at 392.04 If this area were to hold, I think we could rotate back up to the POC and VAH at 408.53-412.62. Under the VAL we could potentially target 380.83 this is September’s VAH. Remember we gapped above this level. This could be a wonderful buying opportunity if it presents itself.
The 20 SMA is at 403.09 and the 10 SMA sits at 405.33, these could be potential spots of resistance and the bull need to reclaim these. The 10 is still above the 20 but price is not. The 50 is currently at 386.76.
Last week’s value area is from 396.20 to 400.61. If price gets trapped in here it could be choppy. Below this zone target 390.23 and above target 406.31.
Tomorrow if we are trading under 396.20 the next areas of support are 393.53, 392.04, and 390.23. Above 396.20 areas of resistance are 397.22, 398.55, and 400.61.
Back above 400 we can run, 401.50-402 would be the next area of resistance followed by 404 and then up to the 406 level.
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