S&P Edge (ES) Daily Trade Plan: The 4-Hour Loss vs. Daily Hold
A detailed ES & VIX plan for Jan 16th, breaking down the 7004 inflection point, the 6971 buy zone, and the critical “developing” support at 6964.50.
Scheduled News
No Red Tag News
Options Volatility Levels
Good morning everyone. Today is January 16th, it is Friday.
We come into the day off of an insane trade plan yesterday where we had the High Short to the tick. This short ended up paying over 45 points if you were patient, retracing 75% of the gap fill. Yesterday was a glorious day for our trade plan members as we were able to take one excellent trade and score big profits for the rest of the day.
As we come into the day this morning, we have No Red Tag News to speak of. We are directly in the middle of the range from yesterday, which puts us in a very precarious position on direction determination.
A Note on Today’s Market:
Volume: Relative Volume is low at -20%.
Range: We have an approximate range of 60 points. We have moved 25 points in the overnight session, leaving approximately 35 points above or below the overnight highs and lows.
Structure: We have lost on the 4-Hour timeframe, but we have not lost on the Daily or Weekly timeframe. This leads us to believe we could still push higher, but the 4-Hour loss suggests volatility and money to be made in both directions.
Gap Fill: Yesterday we did not quite fill the gap down to 6968.00, so be conscious that this is still a spot that could potentially get filled.
🧠 Current Market Context
Yesterday at the close, we gained traction off our 6977.75 Weekly and played the 6983.50 Daily for the pop higher. This took us into our 7004.00 Daily/4-Hour level, only to reject once again.
Currently, we are in Positive Gamma territory; however, our negative gamma flip level is located directly at an area of contention where things go south for the ES.
