 Good morning bookmap community. Welcome, welcome. Looks like we only got 29 people hanging out right now, but good morning to you, to the early risers. And let's jump right in. So my name is Charles. I run a community called Pirate Traders. We are day traders focused on the ES, the NQ and how it moves through the two-way auction process. Charles, what are you talking about? What's the two-way auction process? I don't know nothing about that. Well, essentially we simplify how we look at the markets to a very, very simple question, which is who's in charge of the market? Is it the buyers or is it the sellers? Who is trying to move the market? The buyers or the sellers? If the buyers are in charge, if there are more buyers than sellers, the price of the market is likely to go up. If there are more sellers, the market is likely to go down. So by simplifying everything to just asking that question, what is the market trying to do and how good of a job is it doing? We can have an edge over the people that have these much more complex ways of looking at the market where they have to see this and that and a million other things in order to be able to make a decision. Our decision-making process is very, very simple. Who's in charge of the market and how can I get in a trade with the least amount of risk and the maximum amount of reward, okay? So the tools that I use in my trading, this screen over here that you see on the left, this is the market profile chart. This basically just plots out where the market goes and where it spends the most time and where it brings in the most volume. So the little letters that you see here, those are called TPO's. Each letter represents a 30-minute time period. So you could just think about it like a 30-minute candlestick. And by smooshing them all down on top of each other like this, we can see where the market spends time, okay? So for example, you can see in the overnight last week, the market pushed up to here. It spent a bunch of time in here, okay? And in the overnight over the weekend, the market spent a bunch of time in here, okay? So both of those areas are areas where the market is likely to find support or resistance because it played a lot of tug-of-war there in the past. So on Friday, the market filled the gap, turned around, pushed above this node, and then what did it do? Turned it into support and continued higher, okay? So that's why we wanna know where the market spends time because those areas are areas the market likes to do business. It will likely do business there again the next time. If there were buyers there in the overnight, there will likely be buyers there in the regular trading hours, okay? And we're gonna talk about why I'm bringing that up in a few minutes here. But for the moment, I just need you to understand that the TPO's show us time. Next, we have the volume profile, which is this little section over here on the left side. That is just showing us where the market brought in the most volume, which again is just a way to know where is the market doing business. Next time we get to that level, what kind of business is being done? Is it buying or is it selling, okay? Then over here on the left side of the screen, I have the book map chart. The book map chart shows me the liquidity that is available in the market in real time. And more importantly than that, how it's changing, okay? So where you see all these little random color changes, that is the heat map. And the heat map is an unbelievably cool tool because we can see over here on the right side of the screen where the current liquidity is. So those are the orders that are sitting in the book right now. If it's above price, they're gonna be shorts. If it's below price, they're gonna be longs, okay? And we're asking ourselves what happens when the market gets there? So for example, we've got some resistance sitting here at 49.68. We can see that dark red color. So we assume when the market pushes into there, it's gonna hold as resistance and it's gonna smack the market back down. Let me just change colors here, okay? So the market's gonna push up and then go boop, and then get sent right back down. Well, what happens if it doesn't? What happens if randomly, right as we get there, they spoof that away, that volume disappears, that liquidity disappears? Well, then likely we're gonna go right through it, okay? So having this part here where I can see where the current liquidity is gives me an idea of where the market might go to do business. And then seeing how throughout the day that's been changing gives me an idea of who the participants are and what they're trying to do. Is this a real trend? Do they really wanna push it further? Do they just wanna keep rotating? Are they gonna try to keep it in a tight range? Are they gonna use a wider range? The liquidity and how the liquidity changes gives us an edge in understanding what the market might do next, okay? And then lastly, behind these two screens, you may see me occasionally pop over and take a look at this screen right here, which is showing me the market internals. This is basically the actual exchange level internals. So are people buying and selling the underlying shares? By seeing what's happening with the internals, if it corresponds with what we're seeing in the futures, it just gives us more confidence to take trades, okay? So those are the tools that I use. But it's early. We got 25 minutes before the market opens. So let's just take some time to look at the daily chart, the weekly chart and the monthly chart as a way to give us some perspective of what might be happening in the market. Now, I know what you're thinking, Charles, we're day traders. Why do we care what's going on with a monthly chart? Well, context is king. A lot of times when you're a day trader, you can get too fixed on the ideas of what you're seeing day by day. And you forget that there is a bigger story playing out, that there are longer-term participants that do business a certain way. And if you're not keeping track of what they're doing and what could be happening on a longer-term basis, it can cause sort of like cloudiness and uncertainty on an intraday basis. So it is always a good idea to do what Jim Dalton calls a top-down approach. In the morning, before you start your trading, just zoom out, look at the monthly, look at the weekly, look at the daily, and ask yourself, is there any information I can take away from this? Does this give me any kind of edge? So let's start with the monthly chart right now. What's jumping out at me? Well, several things are jumping out at me. We have continuation of the momentum on the monthly. We are doing what we call one-time framing hire. So that is we are making higher lows every month, one after another. As long as we continue to one-time frame on the monthly, we are likely to continue higher on the monthly. It's really that simple. So look at that. We just kept one-time framing and one-time framing and one-time framing until finally it ended, and then the market was ready to roll over on a bigger timeframe, okay? So as long as we keep one-time framing, the market is gonna continue higher. We are also noticing that on a sort of like multi-year basis, the market has been in balance, okay? There is a very high probability that at some point, whenever the momentum on the monthly is over, it will have to come back down to test the previous all-time highs to see do we really have the momentum on a multi-year basis? Do we really still have the momentum to keep this thing going? So it's bullish to see that we are one-time framing hire, but we are cautious knowing at some point we need to pull back down and test this breakout, okay? So now let's zoom into the weekly timeframe and we'll look for some more information there. So this is giving us a much more detailed look at what's been happening over the last few months. Again, the market spent some time balancing. Playing tug-of-war, it broke lower, but what did that break lower do? It brought in strong hand buyers, okay? Those buyers stepped in at previous support and from there, they created momentum to the upside. That momentum worked its way all the way into those previous all-time highs where we did a bit of balancing and then wouldn't you know, more momentum? So the market is one-time framing hire on the monthly basis. It is also doing it on the weekly basis, okay? That is bullish to see. So the question becomes, can the market get above last week's high this week, continuing the momentum or do we pull back down and test last week's lows? We don't know yet. We gotta wait for the market to open to look for more information there. But if the market is able to push up and get above last week's highs, essentially making a new all-time high, that is a sign that we still have momentum on the weekly and that will probably keep going higher all week long, okay? So we wanna be very aware of that information. Same as with the longer term, monthly chart, we have excess. There are two ways that we can balance off this excess. We could either go sideways at higher prices and then continue higher or the market might need to pull back down with price to the 4,800 area looking to retest that breakout. So again, it's bullish now, but if things start to change, we know we might need to pull back down to 4,800, okay? And then lastly, let's just zoom in and take a look at the daily and see if there is any new information in there. Well, what do you know? What do you know? Looking at the daily, we're getting even more information about how the market has been trading. We can see that on this day, the market had a liquidation, okay? They had momentum, they were trending higher, that momentum broke and that caused the market to liquidate, to sell off. But what happened as soon as it liquidated? V-shape recovery, straight back up. What does that tell us? Very, very strong hand buyers stepping in here. Impatient strong hand buyers. Didn't even wait to come back and back test the previous balance area. They just had to have it right away. That is bullish to see. So everything on the monthly, weekly and daily is saying this thing could continue to the upside and that it doesn't necessarily need to pull back this week, okay? So now let's zoom in even more and we'll look at the market profile chart to see what information we can use intraday to understand what's happening over a bigger timeframe. So intraday, what are we looking at? Well, Friday's range was a very strong momentum type of thing. So when we are looking for momentum intraday, what we are looking for is for price, okay? Which opened down here around 49, 34. We're looking for price to move to a higher level. So it pushes up, it spends time, it brings in volume, it doesn't need to come back down and it just boop, pushes up, spends time, brings in volume, doesn't need to come back down and it pushes up, spends time, brings volume, spends time, brings volume. That is what we call momentum intraday. So Friday's market had a lot of momentum intraday. It also left behind some very important nuances. First and foremost, it spent most of its time and brought in most of its volume above the previous overnight high. That is bullish to see, okay? It also brought the value area which represents 70% of the day's trade all the way up here. That is a sign that the market has momentum and can keep going, bigger picture. So you can think about price, which is literally where is the ticker right now. That doesn't really matter, okay? It's very easy for the market to push price up and down and up and down all over the place. But moving this blue box, this value area, that is very difficult to do. So let's just zoom out here a little bit and look at how that value's been moving up. So you could see that even though the market had momentum here, what was value doing? It was staying stuck in here, okay? So that was the sign that the market was having a very, very hard time getting higher. Increasing the odds, we'd have to pull back in there, which is what caused that liquidation. Now this is obviously FOMC and a bunch of other things and we can get into that, but we're looking at it purely from a technical basis right now, okay? So the fact that we had such a hard time getting value, the value area to go higher in here meant we probably needed a pullback. We probably needed to give those discount shoppers a chance to step in and buy on sale. And boy did they buy, giving us that V shape, okay? So yesterday's market, Friday's market, pulling that value area all the way up here from down here, that is telling us we have momentum and we can keep on going. Doesn't mean we have to, but it means the probability that the market will continue higher today is higher because value is higher. Very nice, okay. So what else did we leave behind on Friday that is an important note, this single prints. So there's this one little section right here around 49.50 where we left behind a set of single prints. That means we only passed through those levels within a single 30 minute time period. We didn't spend really any time at all in there. And that's a very important nuance because when you leave behind those single prints at the end of the day, that is another way the market can give you a signal that it still has momentum and it can continue going higher, okay? Which made sense, we continued going higher all day. What's more interesting to me now is, okay, great. At the end of the day on Friday, things look bullish, we closed at the fairest price to do business, we pulled value higher, we left behind these single prints, but what's gonna happen over the weekend? What's gonna happen when all the big money traders disappear and take the weekend off and the smaller traders that trade the international markets, what happens when they step in? Well, two important nuances jump out at me right away. First and foremost, they found support at the overnight highs from the Thursday night session, okay? So that confirms, like value area confirmed, like spending time up here confirmed, like not pulling back to fill those single prints confirmed, that further confirmed that the market still has momentum, there are still buyers buying. Look at, they bought it exactly at their previous high, okay? So that is bullish to see and increases the odds that the market is gonna go higher. They also left behind what we call a 45 degree angle on the overnight low. Often when the market leaves a 45 degree angle on the overnight low, that is a sign of very, very strong support. So that doesn't mean the market can't go lower today, okay? You don't need to misunderstand the 45 degree angle. The market can always go lower, something can always change, but as of now, 15 minutes before the market opens, as of now, the higher probability is that the market will find support somewhere in this 45 degree angle and continue higher to at the very least test the overnight high, which coincidentally was the fairest price to do business yesterday. So we had no problem doing business at this price yesterday. So if we can find support today between 4960 and 4970, the highest probability is that the market will head back up and do more business where that fairest price was. And who knows, maybe more buyers step in and we keep going to the all-time high. We don't know, but we do know if this 45 degree angle holds, the higher probability is testing that overnight high. So that automatically gives us an edge. Everything is saying bullish, everything is saying this thing still has momentum and can keep going, and we have an excellent level to look for support. Our narrative will change if we break this overnight low. So if the market works its way below there, well, then our narrative changes. The market doesn't still have momentum. It can't keep going. And at that point, it becomes a higher probability that the market will pull back down and backfill the single prints right here, okay? So I'm a trader and I'm trying to decide what trades am I gonna take today? Where can I have an edge? Well, the first thing I wanna know is, is the market more likely to go up or is the market more likely to go down? And then I wanna know, how will I know for sure if I'm wrong? What is the level where I would be wrong? So if they can hold support in here, the higher probability is that the market's gonna go up to the overnight high. And we don't have to take a lot of risk because we know things change right below that overnight low and the other way around. If this support, if this 45 degree angle cannot hold as support today, it will likely become resistance. So if it doesn't hold and we poke below there, well, now we can look for this to become resistance to backfill those single prints. So either way that it breaks, we have an opportunity to either make money to the upside with a tight stop or if it breaks lower money to the downside with a tight stop. There's your edge, there's your opportunity. All you gotta do is wait to see which way is it breaking? Is the support holding? Is the support failing? That alone gives you an edge. Okay, so now let's play out these two scenarios and see what they could lead to. Because we pulled value higher yesterday, because we had so much momentum in my opinion, this is just a guess, obviously, at this point. If the market does pull back down to fill these single prints, we will likely find support somewhere here inside yesterday's range. So the first thing would be to backfill the singles and then to watch for support. Do we get support right there at 49.50? Do we get support right here at 49.45? How about 49.37? And then at the very end, 49.32. If we backfill those singles and then turn any of this into support, the higher probability in my mind would be that we're just gonna go sideways inside yesterday's range the rest of the day. However, if we pull back down below yesterday's low, I'm sorry, yesterday's opening price, if we get below 35, well, then we probably need a larger pullback. Does that make sense? So if I'm short, I'm monitoring for continuation to the downside. I don't know if the support is gonna hold. If it does, great, I get out of my trade, I take whatever profits I get, and I say, fantastic, I'll trade rotation the rest of the day. If not, I monitor for further downside continuation, okay? Same thing to the upside. If the market can hold the support in the 45 degree angle, it pushes up to that overnight high, I can take profits there and wait and see what happens. If the market pushes above the overnight high and fails and pulls back in, we likely go sideways inside today's range for the rest of the day. But if it pushes above that overnight high, comes back down and finds support, we are more likely heading for the all-time high. So in both scenarios, whether I'm getting long or I'm getting short, I wanna monitor for continuation because it could just do one little push and then go sideways, one little push and then go sideways, or it could keep going all the way above yesterday's high or all the way below yesterday's low. Either way, getting into a trade with a tight stop in here and getting all the way to yesterday's high, that is an asymmetric opportunity. Getting in a short trade and going all the way to yesterday's low, that is an asymmetric opportunity, which is food for thought. We got about eight minutes until the market opens. Does anyone have any questions for me? Let me know in the chat. Good morning to Will, one lot trader. Jay, who says, thank God it's Monday and the casino is open, baby. Busta Move, good morning to you. Michael, welcome. Busta Move says, gotta have it. You've obviously taken one of my courses and that's what happens with the liquidation break, might, sometimes they just gotta have it and it just fucking reverses. That's funny. I haven't used that term in a while. Philip, good morning to you. Jason says, smash, smash the like button for the pirate. Thank you for the reminder, Jason. Yes, if you have not yet, please hit that thumbs up. We always wanna send more people to the Bookmap channel where you get lots of free education. Good morning to Mark. Rando says, what chart is on the left? Is it part of Bookmap? It is separate. It is a market profile chart from a company called Window Trader. And yeah, there are two totally different ways of looking at the market. The Bookmap is liquidity and the market profile is time and volume. Chaitown says, I love asymmetric opportunities. Significantly changes your long-term P&L. Aim small, miss small. You got it, brother. I tell people again and again and again that the way I make my money in trading is not from making an exact amount every day. It's from being in every trade, being in every opportunity, and when there's an asymmetric opportunity, taking advantage of it and catching the whole move. And then you end up quadrupling your profits for the week in one single trade. And so you might have to kind of sludge through trade after trade after trade. You win, you lose, you win, you lose, you win, you lose. And then boom, you catch that big winner and that's how you make your money. Because I don't know what's gonna happen, right? The market could find support here, head on up to that overnight high and fail. And then we just go sideways the rest of the day and we won't make that much money off of that. But it could also head to all-time highs and keep on going like a rocket ship. And so if it does, I want to stay in that trade. That will increase my profits over a series of trades significantly. Good morning to Grizzly Bull. Debbie B in the house. Phillip is here. Grizzly Bull says, hit the like or walk the plank. Arrr. Good morning to NAP. Mark. Mark says, what do you specifically look at to identify when the market is finding support or finding resistance? Is it simply price reversing? Yeah, so it's a combination of several things. Time, volume, and what we call the tick charts, okay? So the time and the volume that you're gonna see with price action. And it's quite simply how much time and how much volume. So if, for example, the market were to open right this minute and it were to poke down here to say 66 and then instantly reverse that support, right? Spending very little time in there and bringing in very little volume, that support. You can, that's why we have this 45 degree angle, right? Because each time they poke down they spent less and less and less time, right? That's why we have this taper on the volume because each time they poke down less and less and less volume, okay? That's a sign of support. So it's not gonna be as easy to read happening in the first 20, 30 minutes of the day as it is after a whole weekend. So I'm gonna have to think very quickly and that's gonna take experience, right? But that is what I'm looking for. Does when the market goes down, does it just very quickly come back up? Or does it go down and stay down? And does it bring in volume at the lower levels? Or does it just bounce, turn around and bring in volume? So it might spend some time, it might spend 20 minutes just playing tug of war here. But during that time, the whole time I'm watching what's happening at the lows. Are we getting taper in volume? Are we getting taper in time? And if we are, that's support. Same thing with the resistance. If the levels were to break and the market were to poke below the overnight low and come back up, time and volume, right? Is it just barely poking in there and coming back down? Or is it poking in and then staying in there and just grinding and grinding and grinding and bringing in volume? The grinding is not resistance, the poke is. The poke and reject, okay? The last thing that I would look at, once I was sitting there and I had made a decision to myself, this is important. Not before I've made a decision. Once I've made a decision based on price action, I am confident we have support. I am confident we have resistance. I will then look at the tick chart over here. The chart is literally called TICK, which is the NICY ticks and that will tell me whether I should trust what I'm seeing in the price action. If the ticks are above the zero line, it is more buyers stepping in, therefore I can trust that the support will hold. If the ticks are below the zero line, it is more sellers stepping in and that support probably won't hold. It'll probably break. So first I'm watching price action, then I'm confirming with the ticks and of course the book map is the sort of secret edge in all of this. When we push into support or we push into resistance, there will be liquidity at whatever level we're talking about, okay? Does that liquidity actually fill or does it disappear? That adds to the edge as well. So these are all the things I look at. Any other questions from the chat? One minute before the market opens. We got 120 people hanging out, only 27 likes. Smash the thumbs up for the pirate. Good morning Frito. The market is open. So right off the bat, they left behind a weak high. Anytime the opening price is the high, we are likely to revisit it. That increases the odds. We will find support here in the overnight range and come back for that high. So we just talked about it. What are we looking for? Do they just barely poke down and come right back through or do they grind and grind and grind in here? Let's see what happens. I'm also making note of this is getting a little more complicated, but I'm making note of this random pool of liquidity on the book map down here around 4932. Often when the market has these random little pools of liquidity that are sitting here, they're sitting here for a reason. It's because the computers that do the day trading, the bots that day trade the market, they use the current liquidity to make their decisions. The matrix that they use to make decisions. So if somebody just puts in a big old order with a ton of liquidity down here, it makes those day trading bots less likely to go long because they will think the market needs to come back for that liquidity. If that liquidity randomly disappears somewhere in the day, that will likely be a sling shot that takes the market higher. But as long as it's there, I suspect we're gonna get some tug of war inside yesterday's range. So now we are watching for support anywhere above 4963. Looking for a bounce. Okay, so there's your first bounce right there. Where did it happen? Okay, so for now that overnight low is holding. Do they immediately turn around and head back up through the opening price or do we continue to grind in here, spending time and bringing in volume? Let's see what happens. Good morning to Tom Gunn. Arr! Our jet is here. Scooball in the house, 200 dogs. The Haas and David G. The brigade's all here. What up boys? Okay, so I'm sorry to make this more complicated but that support is holding. We're getting the bounce. How strong of a bounce is it? Well, can they get back through the opening price? If they cannot, they will need to come back down for these lows because this is not good taper. I suspect they need one more little poke down here but if they pass back through the opening price, then they won't. They can just keep on going to that overnight high. Okay, so the first bounce did not get through the opening price. That's slightly less bullish to see. When we pulled back down, we are now spending time and bringing in volume in the 45 degree angle. So that increases the odds. We need one more poke into support before we'll be ready to reverse. Here we go. So again, do they just barely poke down and reverse or do they spend time down here? Do they bring in volume? Do we get taper that looks exactly like the taper in the overnight? With the volume profile here or do they stay down here and spend time and bring in volume? Let's see. Okay, so the support is holding. So now we're asking the same question as we were earlier. Is this enough to get us back through the opening price at 73? If not, we'll need another push into support and we'll just keep dippin' until we bring in enough buyers to get through that opening price or the overnight low breaks. Can. They. Hold it. Scooball says ticks are pretty net short at the opening. Yeah, they were, but the overnight was net short. So that's okay. Let's see what happens when they get back at the zero line. Right now they're saying buyers are steppin' in. Can they hold it? Can they hold that overnight low? I see the book map is going dark here on liquidity. I assume there's some news comin' out here at 9.45. We should expect a little flutter of volatility. Little quick little, but as that news breaks. Oh, the hash says it's PMI. Thank you for the heads up. Okay, so second poke into support held. Same as before, can they get it through the opening price? At this point, if the market cannot get back up through the opening price, it will increase the odds. They're gonna break through that overnight low, which would be less bullish to see. So the buyers really need to hold this and make that move through the open. Right here, right now, right here, right now. Do, do, do, do, do, do, do, do, do. So choppy. All right, let's take a look at those ticks. We are seeing support. Let's see if those ticks confirm it. They do not. Those ticks are sayin' we still need one more little dip to bring in the buyers. Can they poke them back above the zero line? Okay, so this little node, it's very small, but this little node right here between 49.67 and 69 has been acting as resistance. Does it now become support? Can that hold? Can we keep those ticks above the zero line? And can we get through that opening price? If so, that will be a confirmation that buyers are in control of the market. If not, we need another dip. And the chop will continue. Ticks are sayin' it's not support, meaning more chop. So now we're having to start to rethink things a little bit. Because if the market was gonna hold this 45 degree angle, they should have been able to get back through that opening price. The fact that they have not means we probably need to poke below the overnight low looking for buyers there. So the next question becomes, is it just gonna poke below and then turn right around and go right back up? Which is what we call a look below and fail? Or are we gonna push below and spend time in here and bring in more volume? That would be bearish to see. I would say if I had gotten long in the support, I would move my stop a tick above my entry at this point. Even if I got stopped out and the market went up, I would have another opportunity to buy support at the halfback. But for now, this feels like too much risk to be long in here. As they almost certainly need to poke below that overnight low. So if it comes down and stops you out and then it pushes back up, you can always get back in at the halfback. Sorry, I'm already in giving trade ideas mode because of the workshop today. None of this is financial advice. Do what you want, don't listen to me. Frida says, we never listen to you. Fair enough. So I know what you're thinking. You're out there and you're thinking, Charles, this is so much chopped broccoli. We're just grinding and grinding and grinding. How can we have any sort of idea of what's happening next? Well, we're getting support in the 45 degree angle. That's bullish, but it's not enough to get a bounce through the opening price. That's less bullish, right? So as long as we are unable to get back through that opening price, the odds are getting higher and higher that we need to test that overnight low, right? The more time and the more volume we bring in, the more likely we need another dip. So I would say it's pretty much 50-50 at this point between the buyers and the sellers. But if it pokes below that overnight low, it could very easily reverse and come right back up as there have been buyers waiting on every single dip so far today. Not enough to get the full bounce, but there have been buyers waiting. So they are likely waiting below that overnight low as well. It dipped and they bought, it dipped and they bought, it dipped and they bought, it dipped and they bought, it dipped and they bought, right? So there's not enough to get all the way up here yet, but there's more waiting right in here. Fred says, Charles, be making bread in the market. Then he decide how else he can make bread. I'm not sure what, oh, make bread like money, I get it. Yeah, baby, making bread in the market and in the oven. All right, so once again, book map is going dark here one minute before the clock strikes 10. We know what that means. We got some more news coming out at 10. So we'll look for some volatility and then see what happens after that. Here you go. Boop, boop. All right, looks like they're going for that test of the overnight low. Remember, it is not bearish if it pokes below the overnight low and then reverses right back up. That is actually bullish. It is only bearish if it pokes below that overnight low, comes back up and then turns this into resistance. Then it's bearish for continuation lower. Let's see what happens. Okay, there's the test of the overnight low. So same as before, we're looking for time and volume taper. Do they instantly reverse back up or do they start to spend time and bring in volume below the overnight low? The more time, the more volume, the more bearish it becomes. Which one of you guys put 472 stops at the overnight low? Come on, who was it? I know it was one of you. They got you. Take out your stop and then they reverse. All right, so we did not get a look below and fail of the overnight low. That is bearish to see. And the ticks are now clearly heading lower, which is bearish to see. So in my mind, that increases the odds that we are now gonna turn this 45 degree angle into resistance. What was support throughout the overnight will likely become resistance now for continuation lower. That increases the odds we're heading down to 49.50 to backfill the single prints there. Now I don't suspect we're gonna go on a straight line, but that is the target to the downside. So we are now looking for resistance at 64, 66 and 67 for continuation lower. David says, can we look at the NQ? Yes, sir. So again, for ES traders, we're looking for resistance at 49.63 and 49.66. Can they hold it? If they can hold it, continuation to the downside is the higher probability. Let's take a look at the NQ. Man, NQ left a very poor high behind on Friday and no single prints. So I would say the NQ is in the exact same position as the ES. They tried to head up and test the overnight high. They could not do it. That is bearish to see. They have now pushed below the overnight low. So if they can turn this into resistance, either literally right now at 17666 or up here in this node around 17686 or even up here at 1700. Any of those levels act as resistance, it increases the odds that you're heading down to look for support around 1700. Okay, bearish to see. Now, if none of those act as resistance and the market is able to push right back up through, well, then it's bullish to head back up for the poor high from yesterday. But right now it would seem the higher probability is continuation lower. So we are looking for sellers in both markets. So as we're talking about the ES, if you were to go back and watch the first few minutes of this stream, you will remember that I said the first place that the selling could reverse is the base of the single prints here at 4950. Okay, this is just an area that has a high probability of backfilling because we often come back for the single prints but that might be all the market needs. It may just get there and then reverse and come back up. If it doesn't, if it gets new selling down there, that is very bearish. Okay, so we got potential support, potential support, potential support. It could reverse anywhere, but if it doesn't, then it starts to get very, very bearish for further downside continuation. So the first potential support is 4950. We'll see what happens when we get there. Nando says, Apple's looking strong uptrend. How on earth? Yeah, I'd be cautious on that. I would describe it more as balance at this point. So they're about to look above this candle literally right now at 18, sorry, 188. If they get above there and they find support, then I'd get bullish for continuation higher. But with the fact that the rest of the market is going down and there is arbitrage bots that are still connected to Apple, the higher probability is a look above that will fail and start to come back down. So I don't see that as quite as bullish as it looks, but if they can get above there and hold it, that would change my mind. I can't control the survey here. So let me know in the chat, you guys think that this base of single prints at 4950 is gonna hold? As support, do you think we're gonna reverse and head back up into the overnight range? Or do you think we're gonna get more selling and continuation lower? Let me know in the chat. What do you guys think's gonna happen? Support or no, where will it go? Okay, so there's that backfill of those single prints. New selling, new selling. Er is over. Selling, more sells, no support, selling. You know what that means, guys? That means it's definitely gonna find support and reverse if everyone thinks it's not. And the chat is right, more selling. Reep, reep, reep, reep. So we are now officially monitoring for continuation lower. We don't know how low it's gonna go. There is potential support here in this node, here in this node, here in this node, and this market could reverse anywhere. But if it keeps bouncing and then getting new selling, we are assuming it can keep going down as far as it needs to to try to bring in buyers. So we'll just watch each support level like we just watched that single prints. And we'll just see, can it bounce? If not, continuation lower. Here we go, testing the first support or the second support right now at 45. Caution said puke, he was right. It's liquidation time. But why do we care? Why do we care about liquidations? What's so important about the fact that if the market drops very, very far, very, very fast as it is now doing, what information does that give us? Well, it tells us that the buyers who step in and we don't know where, we don't know where they're gonna step in. But the buyers that step in will likely be strong hand buyers. So if the market liquidates, find support and it turns around and it heads all the way back up to the overnight low, that would actually be very, very bullish. But if it liquidates and it doesn't bounce and we just get more selling and more selling and more selling, well, that's very bearish to see. Because it means we just don't have any buyers. Let's see what happens. Charles, you're telling me the speed that the market falls gives you an edge in understanding who the participants are and what comes next? Yes, sir. Because when the market is a falling knife, there's only two buyers, people that don't know what they're doing or strong hands. The people that don't know what they're doing get squeezed every time and we get more selling and the market continues lower. But if it's strong hands stepping in, the market will reverse and head right back up. We don't know yet which is happening. So we're monitoring for continuation to find out. All of this and more is being taught in my mastery of markets and minds workshop that literally starts 40 minutes from now. This is truly your last chance to sign up. If you've been thinking about taking it, head to marketsandminds, marketandmind.com and sign up now. So once again, new selling, bearish to see. Henry says, I signed up January 8th and have not received an email. Hmm, just real quick right now, shoot me an email at Charles at marketsandmind.com and let me look that up for you. I'll make sure I get an email out to you before 11. All right, so we got a liquidation break. We got new selling at the Lowe's that increases the odds that we need further downside continuation today. So the first potential resistance is literally where we are right now, 49.50. If the market gets smacked down here, it increases the odds we're heading lower. If not, we'll look to head up and test the halfback at 49.57 and look for resistance there. David says, Charles, what do you think about the liquidity at 49.33? Right now, I think it's gonna disappear. I think they're using it as a magnet. So I'm gonna get a little conspiracy theory-esque here, but essentially I think that the stronger hand buyers, they wanna step in in here. So they're leaving that liquidity there as like a magnet to tug on price, to tell those day trading bots, don't you dare go long? There's so much liquidity below. That's allowing the market to liquidate lower. But then as soon as they have filled whatever orders they wanna fill in here, I bet that just disappears, like out of nowhere, poof. And as soon as it does, right back up. Now, obviously I don't have a crystal ball, I'm just guessing, but I do not believe that those are real longs looking to fill. I think it's all a game. Scooball says, what do you think about the idea of the market finding resistance around the overnight low? Is it too far? Yes, at this point, it's too far because that would be, you know, liquidation break. If it gets through the halfback, that means these were strong buyers, right? And if they're strong buyers, they're coming back for the high. So no, I wouldn't trust the overnight low anymore. Not that it couldn't happen, but I wouldn't wanna be short there. If it were to find support, go back up there, find resistance and push lower, I would look for the next resistance to sell after that. Because likely if they pass through the halfback now, it's a retracement of the liquidation and we're heading back to the opening price. That's what's so important about understanding the tempo. When it falls that fast, boom, boom, boom, boom, boom, there's only two buyers that step in. Either people that don't know what they're doing, weak hands and they get squeezed very quickly and it continues lower, which is what would happen right now. Or they're strong hand buyers, in which case we never have to come back for that low again. And the low does have good excess and good taper. So it could be the low of the day. If they got all the way back up to the overnight low, yeah, then that's probably the low of the day, you know? All right, ladies and gentlemen, with that I must say goodbye. I must say farewell to all of you. I wish you the best of luck. If you put a gun to my head right now and made me choose, I think we're just gonna trade inside yesterday's range all day today. If the selling continues down into the lower end of the range, above yesterday's opening price, I suspect the buyers will step in there and then we'll just go sideways the rest of the day. If we do get new selling there, well, then it's very bearish for a larger pullback. But I would say take it one step at a time. The message the market gave us with pulling value all the way up here and then spending the whole weekend up here is that this area is a fair price to do business. So that increases the odds that those stronger hand buyers will want to step in down here and then get the market back up there. So I'm not bearish for continuation lower just yet. I mean, after the momentum is done, you know? If the C period pokes below the B period low, which is at 49, 43, we will be one time framing to the downside. Normally at that point, say the C period pokes below the B, we'd actually be using the B period highest cessation. For me, I just use this node right here at the half back. So as long as we stay below there, we're likely to get continuation lower. And then once we print the D period, we use the C period high. Once we print the E period, we use the D period high and so on and so forth. So intraday right now at this moment, I'm bearish, but I don't necessarily think we have to get below yesterday's low. So I suspect there will be buyers waiting in here. Good luck, happy trading. If you are in the workshop, I will see you in 30 minutes. The rest of you, I'll see you tomorrow morning. Have a good one, everyone. Bye.