S&P 500 Daily Trade Plan: The Volatility Trap & The 6964.50 Pivot
A detailed ES & VIX plan for Feb 12th, breaking down the 7004.75 “Make it or Break it,” the 6938 Hold, and the Red Tag Volatility.
SCHEDULED NEWS
OPTIONS VOLITILITY LEVELS
Today is February 12th, it is Thursday. We come off another ridiculous day in the trade plans. I called the high perfectly for all subscribers at 7009.50, even gave the actionable setup of moving below 7004.00 for follow-through and continuation, and ultimately fell over 80 points to come down only to play our 4-Hour leg that was our major significant Above/Below pivot mentioned all throughout the trade plan at 6938.00. I also gave the significant resistance at 6977.75 which played not only once but twice for over 25 points, yielding trade plan subscribers well over 150 points yesterday of potential setups with little to no heat. Congratulations to all those who took advantage of these plans.
A Note on Today’s Market:
News: 8:30 AM Unemployment Claims (Red Tag). This is sure to be a market mover as the market is preparing for a big CPI print tomorrow.
Volume: Relative Volume is -47%. This is more than normal coming into the morning.
Range: Expected range of 100 points. We have moved 34.5 points in the overnight, leaving approximately 50 to 60 points (based on reduced volume) today.
Context: Price is balanced all evening after having our massive smack from the highs yet holding our 4-Hour leg at 6938.00. We are coiled tight. We are only 50 points away from ATHs but in a very fragile area; if lower support breaks, we could flush significantly hard.
🧠 Current Market Context
The Coiled Spring:
We have sat above our major pivot at 6964.00 as we have balanced sideways yet staying below our significant resistance. The S&P is coiled tight. Which direction she will go, we’re not certain.
The Distribution Look:
Price will continue to come down as we are currently moving in a sideways fashion that looks like distribution to me. We have not gained on the Daily timeframe.
SPX Resistance:
SPX also has massive resistance located around 6975.00 that goes in perfect combination with our levels on ES at 7004.00.
