03/06/2025

Traders,

Let’s review what we discussed yesterday. 

SPY and the S&P 500 Emini Futures (ES) have very similar price action. 

Remember this chart from yesterday? 

The Asia and London sessions of the overnight market are key because they lay the foundation of what’s likely to happen at the New York open in the S&P 500 and therefore SPY. 

The market creates key levels at key times where liquidity sits. 

Liquidity is buy stop orders above old highs and sell stop orders below old lows. 

So when the market trades away from these levels, the idea is that it’ll come back at a later time to attack these buy/sell stops. 

Let’s look at yesterday’s price action in the S&P 500 Emini Futures market to see how this played out. 

The Asia session created a range, a high and a low of the session. 

You can see that when the London session opened at 3AM, price moved towards the Asia High and Asia Low stopping out everyone who went long and short during the Asia session. 

We can clearly see the London Highs were left untouched at the NY open, so we could expect price to come back to it. 

Knowing that the SPY price action is similar to the S&P 500 Emini futures, you can expect the SPY price to trade to similar levels as depicted below. 

Now, each day has its own characteristic. 

For example, on a bearish day, the Asia and London Highs may be left untouched. 

Or on a bullish day, the Asia and London lows may not be traded back to. 

However, you can use these key levels on days where price is ranging to formulate a bias. 

The key levels I use are the following:

1. Previous NY session High, Low , 50%

2. Asia High / Asia Low

3. London High/ London Low

I have tried to simplify this as best as I could, but there is a LOT more that goes into this as you could imagine. 

If all this sounds confusing, all you have to do is follow my zones and trades inside Game Plan and Trade to Close where everything is spoon fed to you. 

Voz