 Good morning, traders! Ba-ba-ba-ba-ba-ba. Happy Monday morning. My name is Charles. Welcome to the Bookmap livestream. I run a community called Pirate Traders. We are a community focused on the ES, the NQ, and the two-way auction process. This morning I'm going to give you a walk-through of how I see the market right now, what we're set up for today, and what that will likely lead to next. So what's cool about the way the market is set up this morning, it is position to tell us what's going on. So that doesn't necessarily mean there will instantly be a trade to take, but what it does mean is by watching what the market does this morning we can have a very, very good idea of what's to come for the rest of the day and even the rest of the week moving forward. Now we have to put it into context. I'm going to give you levels that tell you where, what is likely to happen, but you need to understand why. You need to understand the mechanisms that play in order to understand how to use this information. So just stick with me for five minutes. Let me take you back to the beginning, explain the whole thing so that you have that context to carry forward throughout the rest of the day. Okay, so first things first, the way that we choose to look at the market is to look at it through the lens of a two-way auction process. Okay, so if you think about an art auction, let me just get my drawing tool up here so I can draw some pretty pictures. So if you think about an auction, an art auction, the auction ear starts the bidding at a certain price level. If somebody is willing to bid, then the auctioneer pushes the price higher. He says, do I have $1,000? Do I have $1,000? Do I have $1,000? Somebody raises their hand and he goes, oh, do I have $2,000? $2,000? $2,000? Oh, do I have $3,000? He pushes that market up. He pushes that price level up. The more people are willing to pay for it. As long as every time he lifts the bid higher, somebody's hand goes up in the air that wants to bid on that thing, he'll keep lifting the price higher. Okay, we call that excess. We call that momentum. That is essentially when the market is moving from one location to the next location. It will often do so in a trend. It will have momentum. It'll be like the market is moving in a certain direction. And then we have times where the market is in balance. If that auction were to go two ways, the difference between an art auction and the stock market is that in an art auction, there's only one painting. So the auction literally can only go until the highest bidder and then it stops. But in the stock market, you can just bring out another share of the stock. That's exactly the same as the last one. So or futures contract or whatever, right? So the auction process on the stock market goes two ways. First, you auction it up as far as you can. Then you auction it down as far as you can. You find how low sellers are willing to sell. So you see how high you can push the market and buyers are still willing to buy. And how low that you can push the market and sellers are willing to sell. Sometimes the market doesn't really know how high it can go or how low it can go. It doesn't really know where price could explore. So it goes up and down and up and down trying to figure that out. That is what we call balance. That is what we call rotation. So we look at the market on whatever timeframe we're looking at it, whether we're trading as a swing trader and we're looking at it over a period of days or we're trading as a day trader and we're looking at it a period over hours, we're trying to understand that context. Which is happening? Are we in a moment of balance where the market is rotating within a range? Are we in a moment of excess? Are we in a moment of momentum where the market is moving in a certain direction? Well, one of the best ways to understand whatever timeframe you trade on whether you're trying to scalp trade and you want to know what happens over the next five minutes or you're trying to day trade and you want to know what happens over the next five hours or you want to swing trade and you want to know what happens over the next five days. All of those scenarios, the best way to understand whether there is balance or there is excess is to look at it from a further time period to basically step back and then realize what's happening on that further time period and then bring it back in. So we call that the top down approach. To figure out what's going to come next for the ES, I'm going to actually start by zooming all the way out and looking at the monthly candles. Just to answer this question, what is happening on a monthly timeframe? Okay? So on a monthly timeframe, the market has excess. It has momentum. It has been going straight up nonstop for the last one, two, three, four, five, six, seven months. Or sorry, weeks. I'm on the weekly here now, months. Okay, monthly two months. Okay? So we see that we have excess. We see that we have momentum. On the monthly timeframe, there was a potential that we might have balanced. Right? We had this area here. This was balance on a monthly timeframe. We moved from the lower end of balance back up to the upper end of balance. So last week, there was a chance that the market could fail and pull back in on a monthly timeframe and balance. It did not. It instead broke out. This is important to understand. Okay? So we're putting this in monthly context now. This is a breakout of balance on a monthly context. So what does that tell us? It tells us two things. First off, the market is likely to continue higher. If we were balancing for one, two, three, four, five, six months, then we're likely to trend for longer than one month. Right? It wouldn't make sense to go sideways for six months and then just push up for one month and then have it be done. So the first thing that it tells us is that we have excess on the monthly, we have momentum. The next thing it tells us is that we need to back test the breakout. So if this area here, around 4600, was the breakout of that monthly balance, guess what we need to do? At some point, we need to come back and back test that and look for support there if we're really going to be able to trust and move to the upper end. So that's our context. Our context is we have momentum. We're likely to keep going higher, but we must be cautious looking for a pullback to test the breakout. Okay? Well, if that's going to happen, if that's the story we're telling ourselves, what stands out about the monthly chart to us? Well, instantly, the all-time high, that previous all-time high, which we're about to kiss right now. So that previous all-time high, if I'm asking myself, what happens next when we get to that previous all-time high? I'm saying there's two scenarios. Okay? So again, monthly balance here needs a back test. Now we'll talk about balance over the last few years. We'll talk about balance between 2021 and the current market. This is also balance happening on a yearly timeframe. So when the market gets up there and tests the all-time high, it is potentially breaking out of a much larger pattern. Okay? Which could be extremely bullish. So what we'll be looking for this month is what happens. Do we get above the overnight high? I'm sorry, the overnight. Do we get above the all-time high from back in 2022? Okay? Do we get above the all-time high and then fail and pull back in? If so, we'll look to come back and test 4,600. We'll look to come back and test the breakout of the weekly momentum. If not, blue skies, baby. Very bullish. Okay? So that's understanding the market on a monthly timeframe. Now let's look at it on a weekly. Well, on a weekly, we have just straight up excess. Right? Just nonstop, straight up excess. Like I said, seven weeks in a row just plowing to the upside. That is momentum. Right now, at this moment, we still have momentum. What is the sign? Well, we are making higher lows and higher highs. As long as we continue to make higher lows and higher highs every week, the market is likely to continue its momentum. But what's the catch? Momentum doesn't last forever. Right? We don't go straight up nonstop forever. At some point, we need to pull back. Right? So we've got, look at all this momentum, but then we had to go sideways for a while. Look at all this momentum, but then we had to pull back with price. You can go back as far as you want in the chart. You will see over and over again, you can get momentum, but it will never last forever. At some point, you need to balance off that momentum. So on the weekly timeframe, again, I'm saying to myself, if we need to balance off this momentum on the weekly timeframe, where would we do it? How would it happen? What would be the thing? Again, it would be that all-time high. It would be that high from 2022. The market pokes above it, comes back down. That could lead to a lower high if we come back to break out of that balance that we just talked about on the monthly timeframe. Okay. So now we zoom into the daily. If you're feeling confused, don't worry, this is all going to come together very soon. Okay. So now we're on the daily timeframe. And what do we see? Well, now we can see more balance within the excess. If we look at the weekly candle, it's just straight up every week. Just up and up and up and up. No balance at all. It's just going straight up. But if we zoom in on the daily, we can see that it has been balancing on the way up. It's been pushing to higher prices and then spending some time going sideways. And that brings in enough momentum to push up to higher prices, spend some time going sideways, which brings in the momentum for the next move. Okay. So that tells us we're seeing excess on the monthly. We're seeing excess on the weekly. We're feeling we need balance. But maybe the market can do it just using time on a daily timeframe. Maybe we can just spend a certain number of days going sideways at higher prices. And that could be enough to keep the excess going on the weekly and monthly. Okay. Great. Well, if that were the case, what would we be looking for? Well, let's zoom into the market profile chart. That's what we'd be looking for. So Friday's range gave us a humongous clue as to what was coming next. Friday's range told us what to look out for this week to have an idea. Is the market going to keep going or are we going to keep getting excess to the upside? Or do we need to pull back and balance it off? What did Friday's range do? It just balanced inside the previous day's range. Okay. That's a very, very important signal if you look at the market as an auction process. If we are assuming that as long as more hands keep going up in the air, the further that the price goes up that it's going to keep going and inside day is the first clue that we're running out of participants. Right? In an art auction you got at the beginning, you got tons of paddles going up. Do I have a thousand? Do I have two thousand? Do I have three thousand? There's five paddles, ten paddles going up in the beginning. Right? But then the higher the price goes, right? The higher the price goes the fewer and fewer paddles go up in the air. So maybe, you know, you go to the next price, three thousand and you have five paddles and you go to the next price, four thousand and you have, you know, three paddles and then you go to the next price, you know, five thousand, six thousand, seven thousand, you're down, you know, two paddles at the end. Just one person I'll pay five thousand, I five thousand, do I have six? One person I'll pay six, six, do I have seven? Right? That is the volume tapering off. That is fewer and fewer people willing to bid. Well, what else is the auctioneer who's controlling that auction going to do? In the beginning, when he's auctioning, he's going to be going very fast. I have a thousand, do I have two thousand, do I have three? Do I have three? Do I have three? Do I have four? Do I have four? Do I have five? Do I have five? Do I have five? Five? Five? Six? I got six thousand over here from the gentleman in the red hat. Do I have seven? He's going to be going super fast in the beginning because he just wants to keep pushing that price up very, very quickly. But when he gets to the end of the auction and he's running out of paddles going up in the air, what is he going to do? He's going to slow that auction down, right? He's going to try to give other people a chance to convince themselves I should buy this piece of art. So in the beginning, he may not be like, I have a thousand, do I have two thousand, do I have two thousand, do I have three? By the time he gets to the end, he's like, I have six thousand. Do I have seven? Seven anyone? Seven. I don't know why this person is southern. I have seven. Do I have seven thousand? Sold to the lady for six thousand, okay? So at the end, he slows that auction down. Because the volume tapered off, he needs to slow the momentum down to give people a chance to decide if they really want to make this bid. So that is what we witnessed last week in the market. So we saw that as the market moved up to this new level up here, we'll just call it around the 4770s, okay? When it got up to this level, what did it do? It tapered off in volume, okay? So first in the overnight after the FOMC meeting, tapered off in volume, fewer and fewer hands going up in the air. On Friday, in Friday's trade, which was basically just a balanced day, a day for the market to go sideways, what did the market do? It ran out of steam right there. Same area, ran out of bidders, okay? So then what did it do the following night? On Thursday night, same thing, ran out of bidders there again. So what did the stock market decide to do on Friday as a result of this? It had pushed the bid up as far as it could push it up and it had run out of hands going up in the air. So what did it do? It slowed things down. It became the auctioneer and it slowed everything down and just spent an entire day inside the previous day's range. So that the market participants would have plenty of time to think about, do I want to get long? Do I want to get short to try to convince them to get long or get short? As a result, the market went nowhere. It didn't go up or down. It literally stayed inside the previous day's range. Measurements that we use to recognize when the value of the market changes is what we call the value area which is this blue box that you see right here. So that's Thursday's value area and then there's Friday's value area. That's considered a way to measure the fair price to do business. Another way is the point of control, the time point of control which you can see they're almost perfectly aligned with each other and volume point of control. You can see they're almost perfectly aligned with each other. So all of those things tell us what was happening on Friday. We know what was going on on Friday in the market. We might not know what comes next. We don't know if this market is going to fail and pull lower or if it's going to keep the momentum going and go higher but we know what it did on Friday which was it spent a day balancing and we know what's going to happen next based on that. So because yesterday was an inside day, it was a balancing day, it means it's going to lead to one of three scenarios today. Either excess to the upside, more balance with time or balance with price. That's right folks, I said it. It's either going to go up or it's going to go down or it's going to go sideways. There you go. You're welcome. Enjoy. Life is good baby. No, I'm just kidding but I am serious. The reason that that's so important is that whether it's going to go up, down or sideways, first off it's likely to continue doing it for many, many days to come. If we still have momentum and the market is going to continue higher today, it will probably continue higher all week. If the market needs to balance with time, it will probably need to balance all week. If the market needs to pull back with price, it will probably need to pull back for the week. So whatever happens today will give us a humongous insight as to what comes next whether it's up, down or sideways and we have stacked levels to watch. Yesterday's range being inside the previous day's range gave us really specific levels to watch. So what are we watching? Yesterday's high and yesterday's low. That is Friday's high and Friday's low on the ES. The high being around 47, looks like 79. Let me just zoom in a hair. Yeah, 47.79 and Friday's low being 47.57. Those are your deal or no deal levels. Okay. For the market to be bullish, for it to have excess, for it to continue, the first thing it must do is get above yesterday's high and stay above it. We're dancing on it right now, but we still got 10 minutes to the open so we don't know. But that's the first mission of the market. So if the market can't get above yesterday's high today, if it can't get above Friday's high, already you know excess to the upside is over. It's not going to keep going up. It's run out of steam and it needs to balance off that excess somehow. Okay. It might balance with time and it might balance with price you don't know, but if it can't get above yesterday's high, it's not going higher. Okay. Now, if it can get above yesterday's high, then that's a level where the market can tell you what comes next. If we get above yesterday's high, if we get above 79 and we bring in buyers up there, we bring in support that significantly increases the odds that we're heading to test what is now the all-time highs at $47.92. Okay. If we can get above there and find support, it is just blue skies, baby. You should be as bullish as they come. Because that is continued excess on the daily. It's continued excess on the weekly. It's continued excess on the monthly. Baby, this market is full steam ahead and you don't want to step in front of that freight train. Okay. But if it fails, if it's able to get above yesterday's high, push above Thursday's high and then it fails and pulls back in, well, then you know balance. You know, you're heading back down for these week lows. So that's a very important thing to see happen. Do we test yesterday's high? If we do, do we find support? If we find support, do we get to Thursday's high? If we do, do we find support? If we do, continuation, if not failure. Okay. Now, let's say we can't get above yesterday's high. Let's say we stay stuck inside yesterday's range. Obviously, right now we're above it. But let's say in the next 10 minutes or so, it floats back down here. We're inside yesterday's range and we're just going sideways. Anything inside yesterday's range should be assumed that we're just going to get more chop inside Thursday's range. So since the market came here on Thursday, or we'll call it Wednesday night, it's been stuck inside of here. Okay. Stuck, stuck, stuck. Right? So if we can't get above Thursday's high, the assumption is we're just still stuck. I mean, sorry, Friday's high. We're just still stuck. We're going sideways. This is balanced with time. And what we'll likely do is just keep going up and down and up and down in this range as long as we need to before we can push higher. Remember, this is what the market's been doing on the daily. It has been pushing to a new level and then balancing with time, going sideways. Look at this one. This started with an inside day, right? That's exactly what just happened on Friday. Same thing. So that could lead to sideways balance like that. Anything where the market is inside Friday's range is that balanced. That's what we're assuming is we're just going sideways with time. Now, if we get to Friday's low, $47.59 and we get new selling down there, well, that changes everything. That tells us the market might need a pullback with price. So then we become very, very bearish, right? We haven't had a pullback with price yet in this market. But we can and if it happens, it could be a big one, right? So yesterday's low, Friday's low is sort of that deal or no deal level. So Friday's high is the deal or no deal level if it's going to keep going higher and Friday's low is the deal or no deal that it'll start going lower and a look above and fail or a look below and fail increases the odds of more sideways. So that's it. The market is making it super easy on us today. Inside trade it like chop, trade it like rotation, keep coming back to those fairest prices to do business. Fairest price, fairest price, fairest price, fairest price. If it looks above and it fails, take a trade to the fairest price. If it looks below and it fails, take a trade to the fairest price. It's going to keep coming back. It's just going to go sideways. But if it's able to get above yesterday's high and find support and then it's able to get above Thursday's high and find support, you want to be bullish for that continuation. Same thing if it finds resistance at Friday's low. So to me a day like today is about as exciting as they come because whilst there's nothing I'll be able to do right at the market open, there's nothing I'll be able to do right when that opening bell rings watching what happens today will give me insights I can use all week long because this is a major pivot point for the market. It's either going to keep it going or it's going to fail. And so I can watch for that. Very nice. I like very much. Alright guys, give me just one minute here. Actually give me about two and a half minutes. I'm going to go make a cup of coffee so that I'm jazzed and ready when the opening bell rings. I will be right back. If you have any questions for me, put them in the comments now and I will get to them upon my return. Alright, I'm back. I have coffee now. All's right with the world. It's going to be okay guys. We're going to survive. Alright, let's jump into some questions. NAP says good morning. Good to see you NAP. Bus to move in the house. Shawshank is here. Debbie B good morning to you. Ships. You're such a good teacher. Thank you brother. Frito, good morning to you. Glutenmagen to Holger. Nor auto trading is here. I know what you're thinking. Nor, you're thinking what's happening with the Q. That's a great question. Let's take a look and look at that. Okay. So the NQ is not the same as the ES. The NQ has more momentum. So the NQ on Friday did not have an inside day. Inside the previous day's range. It continued the momentum. So that is more bullish to see and it increases the odds that momentum will continue today. The overnight did trade very similarly to the way that the ES has traded. So the last few days, we've been running out of momentum up here less and less volume. And that's caused us to spend more time kind of balancing down here. So it's a similar idea as the ES. The market is starting to show us signals of it rolling over. But it has not officially yet with the fact that it made higher highs on Friday. So bullish to see and you should just treat it like a chop zone inside the overnight range. So below the overnight high, 16, 8, 63 or above the overnight low, 16, let's call 800 that's a chop zone where you expect the market to just go sideways and chop around and grind. But if you can get above the overnight high, that is bullish to test Friday's high. Pushing above Friday's high and finding support bullish for continuation. Pushing below the overnight low on the NQ and finding resistance looks to test the overnight low. You should basically be bullish as long as you're above Friday's low on the NQ because it's still trending. So the higher probability is that it will find support and keep going. ES completely neutral and Q bullish to neutral. Let's see what happens. Okay, so for the ES, we opened above the previous day's range. What does that automatically tell us? That's the first little bit bullish signal. If this momentum is going to keep going, if we spent enough time bidding around on Friday that the market is ready to keep going today, the first thing it will do is turn Friday's high into support. So the fact that we opened above it is bullish because it gives the market a chance to turn it into support. So if we can hold 47.79, I am bullish to test 47.92. If we can get above 47.92 and turn it into support, I'm bullish for continuation higher. If either of these levels fail, so if the market pushes above the high from Thursday and it doesn't find support and it pulls back in, that would be bearish for rotation down towards 47.57. Or if we can't get up to Friday's high and we pull back down into Thursday's range, that is a look above and fail of Thursday's high, sorry, Friday's high, which also takes us down to 47.57. Can they hold it? So of course now that I know what I'm looking at, I'm looking at a market with a gap up, turning into a gap and go, which is bullish to see, the next thing I'm doing is I'm looking over here at book map to try to give me some context for what might happen over the next few minutes. Are we going to immediately shoot straight up to Thursday's high? Or do we need to pull back and spend a little time grinding around on Friday's high first? Well, for that I need to look at the liquidity and I need to understand what's happening in the order books right now. Where is the liquidity and how is it changing? Okay, that'll give us a sign about what the participants are doing right this minute. So right now we have what I call a bot shenanigan zone. Both the highs and the lows of the range are being created and controlled by computers, by bots. That increases the odds of chop sideways. There is also no clear liquidity difference above or below the market. So it's not like there's tons of buyers below or tons of sellers above. It's about even and there's nothing that really stands out to me. So that increases the odds also of chop. So I am bullish as long as we are above 4777, but I'm assuming we're gonna have to grind here for probably about 30 minutes or so before we get any big move. So the question now is can they fill the gap? Can they get back to 79 and what happens when they do? Do they find support or not? Good morning, Jay. David G. in the house. Nicholas is here. Caution. TNAZ. Good morning to you. First time watching. Well, we're happy to have you. Ask lots of questions. NAP says the housing market index numbers come out of ten. We will look for some volatility there. hedge fund. Just hedge fund. Welcome hedge fund. Good morning to you. Jack W. Good to see you. Hi y'all. What's up John? So when the when you see this in book map you got shenanigans where you've got icebergs icebergs icebergs icebergs icebergs icebergs just all built up on top of themselves while the market is grinding around in a micro range. You would think about that like any other form of balance, right? Can they break out and what happens once they do? So if they're able to poke above right now the question is does another iceberg pop up and push it right back down? Is the game still going or can it get a little bit of short covering and kind of get a move? Nope so more games. More games. More chop. Okay, so the NQ is above the overnight high. So the same way we're looking to turn yesterday's high, Friday's high into support on the ES. We are also looking to do the same with the overnight high on the NQ. Support at 16 860 is bullish for continuation hire. Can they hold it? So I'm watching for that iceberg right now. Do we get one? Okay, so that's real buying above the overnight high that it's bullish to see. So now there are two potential levels the ES could turn into support for continuation hire either the half back at 4784 or Friday's high at 4779. Where will the buyers be waiting? Good morning to okay and 010 number number 101 McDee Welcome 010. We got 142 people hanging out. Let me refresh the page and see if we have any likes 33 likes 33 out of 140. Come on people give me that thumbs up. Let me get a little thumb thumb. Also if you have any questions, if you're confused about anything if you want to ask, ask away. That's what I'm here for. You've only got me for another 20 minutes. Ask and you shall receive. Percy says me like. Thank you, Percy. Fred appreciate you. Okay, so can we turn the half back into supports? Literally right now hold the half back. They'll be heading up for 88. If it fails heading back down for yesterday's high at 79 can. They hold it. Nope, no support. All right, so now we got to head down and test yesterday's high passing back through the opening price is a failed gap and go. So the market opened with this little gap. It tried to fill it. It didn't need to it immediately went up to that overnight hide that was bullish to see that was a sign it could keep going but now it failed at the overnight high. So passing back through the opening price would mean it's heading to fill the gap not bearish really important to understand heading down to fill the gap is not bearish. It is just an opportunity for stronger hand buyers to step in. So we are still bullish as long as we are above 77. Just looking for that support looking for those buyers to step in. You can chop if you want to you can grind it all around above the overnight high and then back down you'll grind it in and out. You can grind you can grind you can drive us all mad you can grind you can grind the market is balancing. It's trying to break higher it's trying to break higher okay so that was a look above and fail of the overnight high that did not fill the gap that is less bearish to see but I still don't trust it quite yet. I don't think they gave the strong hands a chance. So I think we need one more dip. Can anyone tell me what I'm looking at now that makes me think I should be bullish and the market should keep going higher to test those all-time highs. There's something that's been happening since the market opened that is increasing the odds in my mind that we're heading up to 92. Can anyone in the chat tell me what it is that I am seeing. The market might just be chopping around it might just be grinding up and down but what am I seeing that's catching my attention. Andy, VPOC migrating higher. You got it. We pushed to a new level and now we're bringing in volume and we're spending time so we spend all day on Friday down here we spent the whole weekend in here and then this morning the first thing we did was push up above that level and now what are we doing just spending time bringing in volume up here that is bullish to see it increases the odds that there are people that want to do business up here here's the trick to it though we did leave that unfilled gap so what this kind of thing tells me is I should be bullish I should be a buyer I should be buying support but that we may need that one more dip into yesterday's range before we finally get it anytime the market moves to a new level and it spends time and it brings in volume that is telling you it still has momentum it can keep going but a lot of times the market has to break before it can finally it just needs one more little dip to bring in those strong hands so that's what this feels like to me rando says I can see a range day yes so like I said if we can't get above 92 it'll become a range day it'll just be a day of balance but right now it's saying it's going to get above 92 as a matter of fact it's saying not only is it going to get above 92 is going to find buyers up there why because right from the gap up we found out buyers do you really think all those buyers are going to exit the market five points higher of course not you know what I mean they they're going to stay in that trade that momentum is going to keep going so you are absolutely right if this momentum fails the gap and go momentum that we currently have if that fails then yeah just a sideways day inside the range but if they can hold it we're looking to test those highs right now they're holding it as a matter of fact they can dip all the way down to yesterday's high and still be holding it that's bullish to me let's see what happens let's see how it plays out shoshing says bad taper at the highs no we have good taper at the highs perfect taper in fact Andy says the unfilled gap is like a window that needs to be closed no yes that's a great way to think about it right we call it unfinished auction right it's like the market needs to go down there and do business but every piece of information like that like an unfilled gap that needs to be filled that doesn't do it is also information right so while the gap is there and you don't know if we're going to fill it or not you should be assuming we're going to fill that gap that is the higher probability if the market starts to give you signals that you're not going to fill the gap which is what we're getting this morning a gap and go the market pushes up to the overnight high and just spends time up there and just brings in new buyers and just stays up at the overnight high then that is the opposite signal not only do we not need to close the window it's a sign that we need to push higher so again all of this is just we're waiting to see at this moment can they hold the momentum or not but we do if we head straight up to yesterday or to Thursday's high without filling the gap that's even more bullish as a gap and go and make no mistake you can definitely leave gaps behind we've left a bunch over the last couple months there's gaps all in here ken says cue please let's do it let's cue it get fooled again alright so yet and cue bouncing right on that overnight high so we don't know anything until this either holds or fails same as we're saying with yesterday's high on the ES so they are testing it right now for support if they can hold it if they can just keep bouncing and bring in more buyers and bring in more buyers and bring in more buyers and bring in more buyers then they will head up and test Thursday's high which I do believe I'm sorry Friday's high which I do believe is the all-time high and then you have blue skies and it's bullish from there but if they cannot hold this overnight high and they pull back down through the opening price so they pull back down below 16850 then you're looking to head down and test Friday's lows really you're just seeing it as chop and there's nothing to do so yeah moment of truth can they hold it on the cue we're all just waiting with baited breath they have the potential can they do it okay so that's the second look above and fail we're on the ES now second look above and fail of the overnight high so same as I said before that increases the odds if we pass through the opening price we haven't passed through it yet that we will fill the gap but that is not bearish to see it is just a dip a nap says book map volume is low the relative volume yeah I think it's because there was like a ton of contracts in there this morning and it fucked up the volume somebody put a humongous order up here and now it's just kind of it makes it look like there's less volume relative to that but it's not it's normal volume okay so the ticks are telling us that this look above and fail will work increasing the odds of a gap fill so what we'll be watching for is when we get to Friday's high 4779 what happens when we get there do those ticks turn around and head right back above the zero line does that liquidity step in in book map what happens at the gap fill seven mile reach cue new high but it was just testing support five seconds ago oh you mean for today yeah yep as long as it holds that overnight high which it just did then it's continuing to test Friday's high what will happen at Friday's high gives us a clue as to what comes next so if it pokes above Friday's high and it fails and it pulls back down then we're likely to go sideways for a while if it pushes above Friday's high and it brings in new buyers the way it just did pushing above the overnight high and bringing in new buyers well then the momentum shall continue and we don't fight momentum we either join the party or we step aside Ken says have you noticed anything yet from the indicator that tells you the liquidity above or below so the only time it really jumps out at me is when there's a stark difference between the two when there is significantly more liquidity above or below it definitely increases the odds it will move in the direction of the more liquidity but that difference has to be like 10,000 contracts it has to be a massive difference so pretty much you know this little part of the indicator right here which shows you the difference between the two the delta between the two unless that's in double digits it's really not that that helpful so I'm keeping it on my chart and I'm keeping it on it but I haven't found any really tradable info from it it's over 10,000 difference then it should pop out at you there's some pocket of liquidity somewhere that needs to be filled but screwballs got me on the VWAP and I'm liking that I haven't looked at VWAP in years and it is definitely the reversion of the mean level for the market again and again that doesn't necessarily mean it'll act as supportive resistance but just that if the market fails to go higher and it needs to pull back it will often pull back to that VWAP nothing tradable so as we are printing the B period here we've got multiple signals that are bullish to see first and foremost we've begun the initial balance to the upside that is bullish to see we also now have the value area up against the high of the day that is bullish to see increasing the odds they're going to keep it going we also just had two in a row look above and fails to the overnight high neither of which filled the gap so again what we talk about is this concept of when what should happens doesn't happen if the market should have filled the gap when it failed at the overnight high but it didn't that's a little bit bullish to see the fact that it did it twice in a row is very bullish to see so I am now of the opinion that the ES is heading up to test the high at 47 and I believe we will get some continuation from there I don't know how far it will go so once we get above yesterday's high so excuse me Thursday's high from last week we really need to hold that support to keep it going if it looks above and it fails then we're likely going to go sideways the rest of the day okay I do not believe the market wants to go lower today anymore because it wanted to go lower today it should have been able to fill that gap very very easily the fact that it couldn't even fill the gap it tried three times the market opened to try it and then two look above and fails of the overnight high and none of them could fill the gap that is just a sign there are not sellers right now in this market nobody's going short so you've got previous shorts that are covering and you've got new buyers that are entering but no one's going short and not yet so I believe even if the market looks above and fails Thursday's range it's just going to go sideways it's not going to have any big pullback today so that's bullish to see bullish across the boards guys so good luck happy trading once again I remain bullish as long as we were above yesterday's high looking to test Thursday's high and monitor for continuation higher from there the cool thing about being it um oh that wasn't an all-time high the cool thing about being in blue skies right previous all-time highs is that there's no resistance above so you don't really have to worry about sellers you don't worry about sellers coming in and smacking the market down and then it failing and losing steam when you're in blue skies when you're in an area of new all-time highs it's really just momentum so you have to worry about it the lows and do buyers continue to step into the momentum so on Thursday they stepped in they stopped the larger pullback which we could have gotten on Thursday and just balanced with time now I'm sorry on Friday now they're continuing that momentum higher by gap and go push above overnight high continuation higher so this market has momentum folks just watch the momentum when it dips do they buy as long as they keep buying dips the market will continue to rip it will shock you how far they can push it when stonks only go up food for thought bullish bullish bullish we'll see you next week thank you very much if you are a member of the brigade head on over to the private stream and we will see you there if you're not a member of the brigade why the heck are you not a member of the brigade it's only ten bucks it costs ten dollars a month you can pay for that with less than one tick on the ES I guarantee you in a month I will say something that will get you a tick of profit on the ES or something that will save you a tick of losses so it will certainly pay for itself I recommend you give it a try you can see the link at the top pirate traders dot IO I hope to see you all in the room farewell and happy trading