June 3rd, 2024

Rates down, stocks up. Today, the first day of the month, markets are adding to their late-day moves on the last day of the month. With rates coming down and stocks going up, it’s not advised to fade this right now. Lower objectives in ES were met midday on Friday as I had been looking for 5201 to be tested, and the markets basically fulfilled that objective. Then end-of-the-month flows took over.

Now we wait to see if we can get daily closes in ES above 5328 or if we’re in a ping-pong mode between 5300-5200. Bulls have the long-term momentum and have regained short-term momentum. They have to keep it, or else we could be right back down at 5200.

The first day of the month on a Monday can be a one-way train, so the opening range is a key technical measure to watch. If it’s a two-way tape early on, watch for a one-dimensional move later in the day.

It’s important to keep it light and tight this morning. Allow the day and the week to set up. Trust your preparation.

Cheers, DELI

Links to charts:

ES https://gocharting.com/sh/90c8ab6a-180b-474d-bc2a-9e4d11bee65c
ES Order Flow Day Trading Chart: https://gocharting.com/sh/bf1d6211-40b4-4681-a5ee-df6ceb00e84a
NQ https://gocharting.com/sh/03ec7c86-1b4e-4703-a460-32a31c76d176
RTY https://gocharting.com/sh/354f0eb7-235e-4b9a-957b-02a927199142
ZN https://gocharting.com/sh/d425a4cb-182f-4aaf-933d-02ad9ada34db