Yep, It's Another Gap-Up Monday
Primary Edge Levels (ESM4): 5060, 5067, 5080, 5115, 5136, 5178, 5186, 5213, 5224
You can access the MGI document HERE for the latest Edge Levels and insights.
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Five Trade Ideas for RTH 5/06/2024:
All eyes are on the SPY 0.00%↑ 50 SMA as we face the fifth or sixth Gap Monday in a row.
I can’t keep track at this point.
Today’s SPY 0.00%↑ pivot is ~512.55. Below that, sellers likely want 505.89. Above, buyers seek 517.42, the top Value of this pullback leg from the all-time high.
Below are the futures trades I’m looking at today as buyers remain obdurate1 and Volatility depressed:
Backtest of 5224 (short). Three stars. This is both today’s Outlier level and a significant resistance.
Backtest of 5186 (short). One star. I like this trade in an Open-Test-Drive scenario with a tight stop, as it’s in the upper third of today’s Expected Move. I’m only interested if Price shows apparent Exhaustion or Absorption, where sellers keep stepping in to reoffer.
Breakout or Reclaim of 5178 (long or short). One star. I’ll look to the Opening Range (OR) to decide on this trade. This will be a game-time decision. Two-star long if Price bounces at SPY 0.00%↑ 512.55 first.
Breakout of 5136 (short). One star. A breach of this level likely implies Price wants to retest ~5115. I’d close the short there and flip long with a reclaim.
Reclaim of 5115 (long). Two stars. I like this trade in a “Gap Fade” scenario once SPY 0.00%↑ seals 505.89. It turns into a one-star Breakout trade short (or at least a stop out) if /ESM4 breaches 5100.
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Stay classy until then.
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