March 25th, 2024

Two-way tape: Markets are really slow as we head into a shortened week. Nothing clearly favors either side in the short term; we’re in a two-way tape scenario. It’s not always about being bullish or bearish; sometimes the market just drifts sideways. The primary trend is up, so I prefer trading the long side on weakness rather than selling into rallies. Keep it small in this slow market and avoid overthinking.

For RTY, ES, and NQ, I have areas boxed out on the charts where I think the rotation range will be.

RTY 2129-2092
ES 5321-5271
NQ 18,622-18,386

With rates declining, this may favor RTY Bulls if they step in on breaks, but we haven’t seen that yet. If RTY gains momentum, that’s where I’d want to be long.

If we break out of these ranges, we could see extended moves in either direction. Keep it light and tight.

Cheers, DELI