Morning Insight - ES

9/12/2024 - Thursday

Good Morning Traders,

Yesterday, we saw quite the squeeze, just as anticipated. CPI brought massive volatility, and we dropped to the daily level around 5419-5415. The market held this lower area and then reclaimed key daily levels at 5436 and 5445, which triggered a powerful short squeeze, pushing us beyond the previous day’s high and right into our significant resistance zone at 5567-5578.

After a huge move like this (140 points), the market typically needs to digest the action. With major red-tag news today, we need to remain cautious, but we should still expect heightened volatility.

The overall structure of the market has shifted—on the 4-hour, we’ve gained strength, and we're holding the daily structure at the lows. This suggests the market may want to continue higher. However, we haven’t fully gained on the Daily timeframe yet, so we need to stay careful.

If you’re considering longs or shorts, I’ve highlighted some key areas in the video below that you may want to explore. Remember, after a massive rally like this, it's risky to pick a spot too soon.

Stay safe, trade smart, and let’s conquer these markets!

Ryan Bailey
VICI Trading Solutions

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