ES1! No Trade — 2025-01-05

1/5/25 $ES $MES No set up so far. We are looking at a few areas where we can see that there could possibly be a move, but, the set up that I would like to see has already happened. Now I need to wait once the market opens on tonight and into the overnight session, I’ll look and see where they are likely to move because we have a +POI below us and a -POI right above us so not sure where they want to go.

Heavy shorts are sitting in the market and have been starting to build their positions this past December. If we continue bullish this would cause a short squeeze and this could be our catalyst to drive us even higher. We will need to pay attention to DL(s) and WL(s). Dark pool data is suggesting late week buying that held us up on Friday. 

*** A good note from FxRevolution: Credit card spend is good in the short term when we see overall spending increasing as it shows more people has the ability to make larger purchases and repay it. In the long term, however when we tend to see declines in credit card spend it is usually in correlation with bad job numbers as consumers tend to slow spending due to layoffs and defaulting on credit card balances.