SCHEDULED NEWS
OPTIONS VOLITILITY LEVELS
📬 Whitelist Us: To keep these plans landing in your inbox, add rbailey@vicitradingsolutions.com and info@vicitradingsolutions.com to your contacts. Found this in spam or promotions? Mark it “Not Spam” and drag it into your primary inbox.
☕ The New & Improved SPX Morning Brief Is Here: Our pre-market SPX brief, delivered free to your inbox every morning before the bell. Seats are limited and will fill up fast — get your seat now: https://go.vicitradingsolutions.com/spx-brief
Morning everyone. Today is Tuesday, October 27th, and we come off another insane day in the trade plan. We called the morning short, and I said a squeeze was a real possibility over the Previous Weekly Value Area Low and the Daily at 7697.00 — and that is exactly what happened. After price reclaimed, we squeezed substantially, up another 45 points, taking us right into the big 50-day moving average target we had at 7736.00. That level played phenomenally as well. Congratulations once again to all of our trade plan subscribers who took advantage.
As we come into the day, we are still riding the momentum of this squeeze. ES squeezed once again in the overnight session, and lo and behold, it played the exact setup I laid out in yesterday’s post-market breakdown: price swept the lows at 4 o’clock this morning, played our 7701.00 4-Hour, and squeezed right back up as we approach our 7745.50 level. Unfortunately for us, they did it in the overnight session and wiped out all the supports to the lower side in the process. We are up 28 points at the time of this writing, and with every timeframe still pointed down, we are still looking for shorts.
A Note on Today’s Market:
News: No Red Tag news to speak of today. Consumer Confidence hits at 10:00 a.m. after the open — not a Red Tag event, but it could give us some volatility, so keep an eye on that time. We also have geopolitical headlines on the front, with Iran saying it is looking for a meeting to satisfy conditions to end the war, which could add volatility. And with FOMC tomorrow, this market will more than likely spend today digesting as we wait for the next Fed rate announcement.
Volume: Relative Volume is up about 17% at the time of this writing. Using our relative calculation, we could approximately get an additional 48 points above or below the overnight highs or lows out of today’s range.
Range: Expected range of 84 points. We have only moved 43.5 points this morning, leaving approximately 41.5 points left in the tank above or below the overnight highs or lows — closer to 48 points with relative volume factored in. Our ranges have been expanding as we’ve come through October, so look for volatility today.
Gamma: Our gamma shift level still resides at 7850.00, very close to the all-time highs. We remain in Negative Gamma territory — dealers are positioning themselves and hedging to the downside. That gives us increased ranges and volatility, but it also means we can make money in both directions as usual.
Trend: Down. The Weekly, Daily, 4-Hour, and 1-Hour timeframes are all still very much pointing us to the downside. However, since we have charted above the Previous Weekly Value Area Low at 7698.00, there is a possibility to rotate back into the major Previous Weekly Point of Control around 7749.00, or potentially higher.
🧠 Current Market Context
The Squeeze Inside the Downtrend
We are pointed down on all timeframes — Weekly, Daily, 4-Hour, and 1-Hour — and yet we are squeezing. These squeezes have been very predominant in the indices as we come down rapidly: we find support, only to squeeze back up and play the highest, most untested levels overhead. The Previous Weekly Value Area Low at 7698.00 aligns perfectly with our tested Daily at 7697.00, and this is ultimately the massive level for us to stay above. Price did exactly that during yesterday’s cash session, then swept into this level in the overnight, and that sweep is what’s propelling us higher — just as the prophecy foretold. We have also spent some time inside last week’s value area, which is starting to squeeze us higher.
