AM Briefing: MES/ES Setup and Strategy Analysis
This briefing outlines current market conditions and trading setups for the Micro E-mini S&P 500 (MES/ES) as of Tuesday morning. The market is currently positioned in a pre-FOMC environment, characterized by proximity to all-time highs (ATH) and the successful execution of multiple “Battle Plan” trade setups from the previous sessions.
Market Context and Economic Calendar
The current trading session is defined by its position immediately preceding the Federal Open Market Committee (FOMC) meeting. Key data points scheduled for release include Consumer Confidence and the Richmond Manufacturing Index, both expected 30 minutes after the market open.
Strategic Review: Battle Plan Performance
- 100-Point Move: A primary long position initiated Sunday night reached its target.
- Level 90: Identified as a critical target; price reached, back-tested, and continued upward.
- POC (6990): The target for Battle Plan 3 was successfully met.
Technical Analysis and Current Positioning
The market is testing critical structural levels, specifically the All-Time High (ATH) and a significant Daily Trend Line back-test. This juncture is identified as a high-probability zone for bearish intervention, referred to as the “Claws of the Bear.”
Tactical Recommendations
Traders holding “runners” are advised to monitor the roll into the ATH. Stop-loss placement for multi-day holds is recommended at 5 to 10 points below recent lows. Discipline is emphasized through the “playing perfect chess” mental approach.
The market is in a pre-FOMC environment, trading near All-Time Highs and back-testing a significant daily trend line.
Traders should monitor Consumer Confidence and the Richmond Manufacturing Index, both releasing 30 minutes after the RTH open.
The high-probability zone for a bearish reversal is at the intersection of the daily trend line back-test and the proximity to the All-Time High.
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