S&P 500 Daily Trade Plan: The 130-Point Squeeze & The 6857 Pivot
A detailed ES & VIX plan for March 4th, breaking down the 6815 midpoint support, the 6857 monthly ceiling, and the SPX 6837 breakout trigger.
SCHEDULED NEWS
OPTIONS VOLITILITY LEVELS
Morning everyone. Today is Wednesday, March 4th, and we come off another ridiculous trade plan yesterday where we not only called the short in the morning off of our 6794.50 combo but came down and played the 6723.50 Daily almost to the tick. This launched us up well over 130 points yesterday for an incredible long, only to hit our highest untested daily at 6851.50 to finish the day. It was a miraculous day, and congratulations to all those who took advantage of capturing the volatility in full.
As we come into today, we find ourselves still balancing in the lower end of our massive range. Overnight action moved significantly (81 points), leaving us down about six points at the time of this writing.
A Note on Today’s Market:
Volume: Relative Volume is elevated at 71%.
Range: Expected range is 106 points. With 81 points moved in the overnight, the relative calculation suggests we have approximately 56.5 points left above or below the overnight high or low today.
Gamma: We are in Negative Gamma. Dealers are hedging to the downside, so expect volatility in both directions.
Trend: Downside Lean. We are sitting below our monthly momentum pivot at 6857.25, which was rejected in the overnight.
