S&P 500 Daily Trade Plan: FOMC Digestion & The 6903 Pivot
A detailed ES & VIX plan for Feb 19th, breaking down the 6880 momentum shift, the VIX 19.52 support, and the ultimate sweep setups.
SCHEDULED NEWS
OPTIONS VOLITILITY LEVELS
Today is February 19th, it is Thursday, and we come off another insane day in the trade plans where we had absolute perfection calling out our massive 6903.00 pivot as our major level for Above/Below, as well as the insane buy at 6862.00 that took us up 60 points to our massive short spot at 6823.00. All in all, once again it was trade plan perfection, and our subscribers were paid handsomely for following a professional-grade trade plan. This is how you do it day after day—we do not guess, we pre-plan, we play our levels, and we stick to it and reap the rewards of pre-market preparation. Congratulations to all those who took advantage of yesterday, for it was an extremely lucrative day.
A Note on Today’s Market:
News: 8:30 AM Unemployment Claims (Red Tag). This is sure to get a shake pre-market which will mix things up a little bit, so you need to be prepared for volatility as we come into the morning.
Volume: Relative Volume is flat at the time of this writing at a positive 1.5%.
Range: Expected range of 97 points. We have approximately moved 46 points in the overnight session, leaving us approximately 50 points above or below the overnight high or low.
Gamma: We are in Negative Gamma territory. I am expecting another volatile day; I do expect to meet or exceed this range today. Dealers are hedging to the short side.
Trend: We have lost support on the Weekly timeframe, the Daily timeframe, and the 4-Hour timeframe. We are currently pointed to the downside.
🧠 Current Market Context
FOMC Digestion & Downside Momentum
We have been in a massive pivot since yesterday’s open. We had FOMC meeting minutes yesterday which gave some clarity on the Fed’s decision moving forward, and the market is still currently digesting this as we speak. Yesterday, we had a massive squeeze into our big untested resistance levels around 6924.00 which led us down all day and into the overnight session. As we come into the morning, we are down approximately 15 points and still traversing to the downside.
The Sandwich & The Squeeze Potential
As a clarification, the same thing stands which has been in play for the entire week: we have lost support on the Weekly, Daily, and 4-Hour timeframes. We are currently pointed to the downside. However, that does not mean money cannot be made in both directions. This market is ultimately designed to go up, and so squeezes to the upside can be extremely powerful. We are currently sandwiched in between the support at 6880.00 and resistance at 6903.00. Price could technically go either way in this area.
