Video Transcript:
All right, let’s take a look at the S&P today. We’ll start off with the daily chart. On the daily, you can see we had this rejection wick on the downside here. This came from the overnight session. We dipped down pretty hard, then were brought back up about midway through here and started chopping for the most part during the daily cash New York session. So far at the bell here, we’ve either recovered just a little bit more back up or sold off just a little bit more to the downside. Right now, we have price digging into this daily fair value gap down here. We also have price moving and trying to reclaim that 6,800 back to the upside.
Let’s go take a look at the hourly chart. Right out of the gate, you can see we had this overnight down session, with price pushing down, setting that overnight low, and then setting that overnight high way up in here. We had failure out of this passive trend stream. We did break down through 6,800 and took a run back down to here. So here was that trade right here. You can see price pushed to the upside, failed up here for a second time, and then came all the way back down as soon as we broke down and closed below VWAP. Even though the deltas weren’t great, we eventually got the deltas to follow through. Price entered right on the break of this candle right here through the 6,800 VWAP breakdown. We had a slight price pullback here, then price pushed up and dropped again like a rock right down to 6,776. I exited right around here. This was a 2:1 risk-reward on this one.
After that, price oscillated around and popped around for a little bit, kind of doing its thing, then came all the way back up here. There was another trade to be had right here, but I did not take this one as we popped through 6,800. It looked really choppy right through this range, so I stayed out of that trade. I waited for the one right here as price popped up into this area. We had one of two things happening up here: retail traders trying to break out, or some institutional small orders setting limit orders up here and tagging some passive sell orders as price came up. We trapped almost a shooter candle and then ripped to the downside. We had that sell side, that sell stack right through here, and price came all the way back down. I almost thought I was going to miss this entire move down. We did get a pullback, and as soon as price dug into this pullback right into the sell stack, price popped up, trapped some more traders here and here, and then ripped all the way back down. As soon as we crossed over this POC on the prior candle, I moved in for that shot down to here for about a 12-point move.
Those are my two trades on the day. I did not take the afternoon session, even though we did have a nice transfer right here during this particular noon hour. We had a nice hard selloff here. This is the December contract, so I’ll be flipping over here in the morning, but we did have a nice push to the downside, some nice chopping range back and forth, and then a nice transfer of energy back to the upside through here, reclaiming that 6,776 level that I was keying in on earlier in the day. All right, that’s the end of the day. We did get a nice push during that power hour, breaking back above 6,800. We’ll see if it holds overnight.
Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.
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