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Morning everyone. Today is Thursday, November 5th, and we come off another incredible day in the trade plan. We discussed our massive high-timeframe target at the 7507.75 Weekly, which played with damn near precision on election night, only to hold that area and propel us all the way back to the area we spoke about in the post-market breakdown. We said that if we reclaimed 7621.75, we could squeeze all the way up to 7753.50 — and we did exactly that yesterday, coming within 7 points of this area for an amazing call and a beautiful display of trade plan amazingness. Congratulations to all those who took advantage yesterday, as the markets were extremely bullish coming off a post-midterm Democratic sweep.
ES has been drifting sideways in the overnight session, as we’ve continued to hold the massive 7697.00 Daily. We are now coming into a major untested resistance area that, in my true opinion, is the massive make it or break it for these bulls or bears today.
A Note on Today’s Market:
News: No Red Tag news to speak of, but we do have Unemployment Claims at 8:30 a.m. this morning, so we will want to watch that, as it could potentially give us a jolt. We also come into the day with geopolitical fuel on the headlines, so stay alert.
Volume: We are currently down 20% on Relative Volume. Using our relative calculation, this could reduce our remaining range to approximately 55 points above or below the overnight highs or lows today.
Range: Expected range of 117 points, and we’ve only moved 47.75 points, leaving us approximately 69 points left in the tank above or below the overnight highs or lows — closer to 55 points with relative volume factored in.
Gamma: We are still in a Negative Gamma volatility regime, as our gamma flip level is located at 7775.00, directly above us at one of our big major pivots. This tells us the dealers are currently hedging to the downside, which could give us increased volatility and oversized ranges. We want to be careful, as these are times when lots of money is made, but also when money is lost, as the volatility can get a little crazy.
Trend: Mixed. We are still pointed down on the Weekly and Daily timeframes, but we have gained on the 4-Hour and 1-Hour timeframes, meaning we can look for trades in both directions. We are still drifting higher on the lower timeframes but still pointing down on the higher timeframes, so look for areas in the trade plan that are untested to take advantage of this situation.
🧠 Current Market Context
Coming Off the Weekly Into the Make-or-Break
We’ve had a pretty massive, volatile range lately in the S&P 500. Like we said before, we came all the way down and played our Weekly at 7507.75, and ultimately the more precise Weekly at 7490.00, only to propel all the way back up. As we’ve talked about many times before, this was our high-timeframe target and the area where we expected a reaction. Election night unfortunately had us miss most of the action, as we were propelled higher by the time we woke up. We have now reclaimed the lows, we are back above our significant supports, and we are coming off of a Weekly timeframe level.
