Hello traders!

The price action today was pretty much as expected on the SP500 and we traded right into the area of resistance (shy of 2 points) that I talked about and then we sold off a bit from there.

For members last night I shared a trade on the Nasdaq that I liked if we tested lows to rally which we did and that was ideal for an easy price-action setup into all of this because a rising tide lifts all boats meaning that almost everything would rally today.

I shared a lesson with readers Sunday evening on price-action but let me give a quick insight to those here that read this. Price moves area always determinable ahead of time to some degree and anyone that says that they are not either a) is lying to you or b) just has not done the work and in both cases you should ignore whatever they have to say because it’s probably detrimental to your financial health!

The move in the Nasdaq today was almost text book to what I explained would happen last night from the entry to the exit target and it’s not that I have hidden powers it’s that I understand how to read price action and levels enough. So the question becomes what do we do from here? What’s next?

I am making this recap free for everyone to use tonight so enjoy!

Before we get into the SP500 and Nasdaq expectations let’s cover the Sunday trade idea I talked about for members.

$EL ( ▼ 1.45% ) - I talked about this Sunday with you all and the move today is what you want to see as we’re on the path to $120 on this and while this is a price-action and options flows membership I did mention a quick note on it from Dan because that’s where I got the idea from earlier this year and have been trading in and out of it and have probably pulled in about $45K from it so far with another $2K and change from this current move.

This name is going through a larger turn around with a new CEO (if you read above) and their PRGP plan was something that was important so this is all starting to work and you see that in this price action.

I added to this position today and short-term $110-$112 is going to be a technical area where we should see some sellers/profit taking. I don’t plan to sell but for readers who are short-term this is the first stop on this station to maybe consider trimming out of the position.

On Nasdaq: If you read last nights notes in the members post then this should have been a lay-up long for everyone. On days like today pretty much everything will trade higher so I’d rather play the direct approach on the index which is why I mentioned it to you all last night.

The high time frame is bullish but short-term we likely chop or pullback a bit so I would say that tomorrow, unless we break the high of day today, to not expect a rally.

We need to hold $25,660.

If we do rally then the targets are $26,000-$26,150.

Again this could happen and I am open to both but I expect chop tomorrow.

On SP500: We traded right to the area I talked about last night and probably chop to trade lower tomorrow so I would avoid this unless we break the high of day because if that happens that’s where the easier trade is just like the easier trade was on Nasdaq today.

A move above $6815 then triggers this to $6940-$6950.

Support is now $6860-$6870.

Conclusion: The other positions I’ve talked about the last few weeks in my book are moving well after today and we should be bullish on most of this market into next week but we just need a rest day on most of this so I am not looking for the same move we got today tomorrow unless we break those levels.

I don’t see much on any new options flows today that caught my eye and to be fair the positions we already have on are moving like they should so at this point it’s just riding this market and those positions into new highs next week.

Trader X

P.S.

You can follow me on X here.