Futures Trading Plan

As we look at the markets this morning, the ES (S&P 500) is trading down -5.50 points, NQ (Nasdaq 100) is down -7.25 points, YM (Dow Futures) are down -33 points, and the RTY (Russell 2000) is down -4.90 points. All the major indexes hit all time highs (ES, NQ and YM) with the lager being the Russell 2000. At this time all indexes are trading within the value area (area of major volume from yesterday). My plan is look for a long on the RTY at -.5 or 2244.9, with adds near Mon and Fri POC (2241.5 – 2242.2). If the RTY can break higher and above the value area, top of value area is 2268, we could see the RTY head towards 2284.4. On the ES, I’m looking to short this at the overnight highs (4074.5), this is also value area high. I’m not looking to get long the ES unless I see it come down to test Mon and Fri POC, which is just over 4000. This would also be a highly deviated move from the current price. On the NQ I’m looking for a similar type trade, see if it can test the overnight highs, if we see it fail here 13622.25, I will take a short. Otherwise I will let it go. In order to go long here I also need a major move back down to test previous support levels and major deviations from current price trend. A nice long here would be past -1 (13366) down to Mon/Fri POC (13296.14). YM, same type trade as the other two, looking for a failure near the value area high (33460). I will only go long on major moves back into support levels and a major deviations from current price levels. I would need to see YM move back down to test -1 (33042) and move down into major POC levels near 32952, this is where I feel there will be major demand to push back up to make new highs.

Good luck today, remember to be patient and wait for your trade.