S&P 500 Daily Trade Plan: Low Volume Grind & The 7004 Ceiling
A detailed ES & VIX plan for Jan 27th, breaking down the 7004 Make-or-Break and the Prime Buy zone at 6964.50.
Scheduled News
Options Volatility Levels
Morning everyone. Today is Tuesday, January 27th. We come off another amazing day with the weekend review leading us to what seemed like infinite profits. We called the exact low at 6880, and the ES squeezed all the way up into our significant weekly and past 6977. It was a ridiculous day for a squeeze, and the long haul was perfect. Congratulations to everyone who took advantage of this insane, ridiculous price action.
Now, as we sit in the overnight session, we have pushed all the way up into our major resistance area at 7004.00. We come into the day with no Red Tag news to speak of and a relative volume of -36%, giving us the probability of an extremely low, slow, grindy day. When we have relative volume that is negative like this, this puts us in one mode and one mode only: go with Trend and prepare for the grind. The trend is up, and that’s all we should be looking for this morning, as pullbacks are more than viable today.
We have an expected range of 75 points, and we have already traversed 34.5 points this morning, leaving us a possible 40 points in the tank above or below the overnight high or low. As we sit up at the major resistance at 7004.00 with our huge options pivot level at 7000.00, we need to be prepared with the levels to buy if we decide to pull back today. So let’s get into it right now.
🧠 Current Market Context
The 7004 Ceiling & The Bullish Imbalance
We have sat at the highs all evening and bumped our head against our significant weekly at 7004.00. Buyers have clearly accepted value on this push-up as we continue to move higher in a quest for All-Time Highs. We have a significant bullish imbalance from last week running all the way to 7026.00 as an upside target, and ultimately an even higher weekly bullish imbalance going all the way to 7069.25. We also have a weekly upper range potential taking us all the way to 7650.00, which is a great indication of how possibly far we could go this week.
