December 7, 2023 SPX, SPY, ES Trade Plan

Market Recap

Today brought us a classic bull trap. Even on “bullish” news - bad news is good news right - the market moved on the premarket data hitting our first bullish trade idea…

Above 4575 target 4585

At that point I was on the lookout for the next trade idea which was…

If VIX continues going down then a breakout of 4585 targets 4610

As I said in Monday’s trade plan that 4600-4550 is truly chop I cautioned myself on jumping into calls - especially with how choppy and trap filled the market has been. Additionally, for long time readers or those who have read my intraday trading rules at the open especially if we are breaking a level I am more cautious and I really want to see at least 2 5min candles close above the key pivot level. In this case it was 4585 going as high as 4590 where we then started to selloff.

This triggered our first trade plan, but if you have picked up on our trading style we could have used the failed breakout of 4585 to go short targeting 4575 and then 4565. Instead we sold off all the way towards 4546.

• 4575 - This is my “pivot” going into the day. Use it to guide trend on the day. We stay above we have room up to retest recent highs. Below it we could chop back into the zone we have been trading where support has come in at 4550-4545.

• If there is a failed break out of 4575 target 4565

• Below 4565 target 4550-4545

All in all I think we had a pretty robust trade plan - our futures traders ate. Our intraday traders ate. This is what I call success!

Let’s jump into the trade plan and review our key levels.

For those who haven’t subscribed this is a great opportunity to subscribe.

For as little as $15/month we provide daily trade plans for intraday traders and also provide great educational content.

News Catalysts

1. 8:30am est - Unemployment Claims

2. 3:00pm est - Consumer Credit m/m

For more information on news events, visit the Economic Calendar

---

12/7 SPX/SPY/ES Intraday Overview (TL;DR)

Today I won’t be surprised if we see choppy conditions. Tomorrow we have the non-farm employment change.

The key LIS/pivot on the day is to see how price reacts at 4550-4555. While it is not my pivot we could cut through these levels to only find ourself in trouble at 4565. Thus 4565 is my LIS/pivot going into the trading session.

Now if I am a bear I would prefer to trade failed breakouts. This entire 4550-4525 zone is quite supportive as we have seen. So be careful with your shorts and manage risk accordingly.

So as a bear I want to see price get below 4545. Should it get below we will target…