Premarket: Yesterday I took a boredom/rush trade and lost for no reason so I need to regroup today. We have had 2 extremely green days to end this week likely on the debt ceiling news. Yesterday in the PM we broken the Yearly High (4208.5) and then consolidated above it. Afterhours we continued to grind higher. At this time, the move looks like a long on almost all the time frames, with a breakout of the long consolidation period we have to the upside. The problem with this is that we are really in uncharted territory for the year and that makes finding levels more difficult. Going into the day the 0 pivot is way down at 4197.17, with the +1pivot at 4233.33, +2pivot at 4251.67, -1pivot at 4178.83, and -2pivot at 4142.67. Interest levels would be the yearly high at 4208.5, and then near the -1pivot, which also lines up with were we consolidated for a while yesterday. We are also opening above VWAP. If we find a pullback, most likely to VWAP, I want to look for a long towards the +1pivot at 4233.33. Alternatively, if we continue moving at open without an entry, I will look at the pivot for some sort of entry for a short scalp (don't really want to do this), or a continuation trade long. If we break below VWAP and find heavy selling, I would want to target a short to the yearly high level of 4208.5.
Trade 1: This was the trade I described in my premarket plan, we had a pullback to below VWAP and found buyers and went back above. I got in long at around VWAP for a push to premarket high level (4227.25). However, while I was in the trade the TICK/ADD/VOLD were all downtrending, and the Q's looked weak as well, with a move above VWAP and then a rejection. My risk on this trade was 416 which was the low it made at open. The trade moved in my favor initially and then hovered at around breakeven for a while before it found resistance just shy of 4226 and rejected down below VWAP where I closed before stop loss. Typically I'd want to hold until stop but the sell-off was on higher volume with all the other indicators trending red. The only thing I can think of to do differently on this trade is that when I noticed that we were stuck and could not break 4226 to take profits at that point.
Trade 2: JPow started speaking at 11:00, so this was a breaking news type of trade. When he said the word "inflation" we saw a heavy sell off and all the indicators TICK/ADD/VOLD went red. We broke below VWAP and then flew down to the yearly high. This was a riskier trade so I sized down to 2 contracts, but this trade worked. I took profit at nearly the bottom which was nice.