Debriefing 31st May 2022  and Today’s Plan

Debriefing 31st May 2022 

Long weekend and Holiday ON (MONDAYS SESSION IS ADDED TO TUESDAYS ON SESSION) session resulted in a predictable continuation of momentum higher that carried over from Fridays close at the weekly highs. This is coming off the back of a 2-week rally from the year lows.  A reversal of the holiday drift occurred at a notable HTF target at 4202 where passive selling absorbed week buying fort the auction to then persistently trend down into the Tuesday reopening. What was notable from the reversal was the ease at which price moved through key references, such as the Friday Close @4157.25 and then down through Fridays VPOC at 4128.  On Inventory into the open was balanced.

The open on Tuesday at 4138 was muted, buyers attempted to move towards the large gap to the prior close, but sellers resumed the preopen trend to auction all the way back to the Friday spike base @4106. Whenever we see a spike, we apply the spike rules to trading. These lows held into positive Chicago PMI data where buyers then attempted to take control of the auction only to fail back down where sellers unconvincingly broke the lows buy a margin of 2 points. A push back through  MID  and the VWAP (held above VWAP) to only test and fail at the FS VWAP. (Signs of CHOP, 2 WAY Action, trading balance probable).  A key piece of information was the time the auction spent holding above or below Fridays TPO ledge @4120, VWAP and the Prior months Low @4119.  This area was now acting as a clear OU area.  A late morning push to break the IB HIGH @ 4142   and quickly push to the prior close 4158 where shorts were quickly rewarded.  This area was revisited 3 more times before successfully breaking above to the SZ @ 4168 (Sunday’s Open) before falling back into balance and closing at VWAP.  This was a very choppy session but the signs were there to avoid getting stuck in a directional mindset. Reversals from key MGI were quick and allowed scales to carry trades through, even if residuals never made HTF targets.

NORMAL VARIATION DAY, BALANCED, OTFU DAILY(4102) & WEEKLY(3872), NEW MONTH

HI 4156.75| L 4123 | VWAP 4139 | VPOC 4133 |PCLS 4132

Multiple NVPOC bellow @ 4062 | 3945|3885|3830 

ON Session today is trading very balanced inside yesterday’s VA  with a  high  4153.5 and a low @4123.

Longs will want to stop sellers ending the OTFU below 4102.75  and    Shorts will be looking at  protecting  yesterdays highs. Balance rules apply into this session.