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The Inner Circle Trader · @InnerCircleTrader
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Okay? So, now we have two points of reference. Now, when I have this like that, I have two little sweet spots in the previous day's range and to the left of that, why? Cuz we're going to go back 3 days.
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So we have relative equal highs during lunch macro, 11:30 Eastern time to 1:30 p.m. Eastern time. The setup usually forms in the first hour of that 2-hour lunch period. Okay? So between 12:30 noon
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towards that of this buy side imbalance or side inefficiency, which is a suspension block, which has a volume imbalance on the high end and a volume imbalance on the low end. All right, so let's move into the lower time frames now. So, we're at a 1-minute chart.
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Words
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1:04:35
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11min
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Opening (first 30 seconds)
Folks, I just want to go into a quick little review on S&P 500 futures contract for September delivery 2026. On
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What this transcript is
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Folks, I just want to go into a quick little review on S&P 500 futures contract for September delivery 2026. On the left-hand side over here, you can see it's a 1-minute chart. Right there. And on the right, it's a 15-second chart. So, every vertical line or candlestick in this chart represents a interval of 15 seconds. Rather quick, I know. So, before I get into it, I want you to know that I could have used a little bit lower level right here.
If you look at last Friday's London session, you'll see this swing low. You'll see this suspension block here. And I'll leave this as it is until we get to this chart. But, notice these two relative equal lows. They're perfect. Last Friday's London session has these really clean, perfect lows. So, I think that that was a reasonable level to trade down into. Now, because I want to get out before it gets down there, I had limit orders just ahead of that level right there.
So, I'm not looking for it to go down to here, go into this suspension block. I'm not looking for that to be that perfect. But, the sell-side that would be resting right below there, that's what I was aiming for. Okay, so, uh what we're going to do is is going to annotate this as the London session relative equal lows last Friday. Okay? And then we'll put that to the right. So, now when we pull it up on this 15-second time frame, you'll see this level here.
Now, I'm going to annotate this low with a blue line. So, the blue line that is just beneath this annotation here. Right there. So, this red line that has the London session relative equal lows from last Friday, the blue line represents this. And then I'm going to annotate this suspension block here. So, that way you can see what it offered, but what I was willing to only simply not uh hope for more than was you know, reasonable.
All right. So, I'm going to make this purple. All right. And then we'll do this as extending to the right. So, that way you'll see London session relative equal lows from last Friday, the swing low, the bullish suspension block there. So, now with this, just like this, now I'm going to go over to this chart here. We have price action fill here. Right there. You can see that right next to the line there. Just underneath it.
Right next to the arrow here. And this one right at the line, the blue line. Okay? And the blue line is just the buy side liquidity pool. Okay? And if we bring this back up into what we were seeing earlier, now we can see that London session relative equal low from last Friday and that suspension block down here and that level. Okay? So, that's what's being shown here on the 15-second timeframe. This level was the draw I was reaching for and again was based on everything I outlined over here.
And my final exit was right there just ahead of it, right there. You see it? Now, the reason why I was entering up here was based on the fact that we had short-term high when I felt the market was likely to continuously go lower and let me get this off here. So, bumping this high, I wanted to see it sell off using a swing trader's model. I teach this in my core content lectures in the latter months of the 2016-2017. So, this is a fulcrum point.
So, everything that from this low up to this high here, if price goes lower, it should swing basically this measured move up should project that same thing down here. So, even though it was likely to lead into this, I used a low-hanging fruit objective to get in, which would be just above the relative equal lows. Okay, and it was rather quick when it dropped, but nonetheless you can see that the market traded up multiple times and look how perfect, I mean, really, this is why I teach that the S&P market is the gentleman's market.
It's very refined. Look how many times the body stopped right here at that level. Either the open or the close is sitting right at that price level. You don't see stuff like that in NQ. NQ is a little bit more wild. It's not as wild as the Dow. Dow's a little bit of a lot lizard, um, but the S&P, like that is the gentleman's market. It's very pristine. The deliveries are a little bit more precise than what is shown in a Nasdaq.
I like Nasdaq simply because the moves are a little bit exaggerated. And because they're exaggerated, it helps me find the little crack in the correlation between the two averages being S&P and Nasdaq. Same thing here. Look at the bodies here. So, I'm going to borrow this line. There. I'm going to place it just on the bottom of that, right there. Again, look at the bodies. They're just stopping right there continuously over and over and over again.
Bodies in here, same thing. You don't see that in Nasdaq. You don't see it in the Dow. It's just it's a totally different market. More professionals trade S&P than the Nasdaq, simply because it's much more cleaner in terms of its price action, but unfortunately that comes with a cost. It's it's a little bit slower. Okay? And that slower pace may be exactly what you're looking for. I use the Nasdaq in my example simply because that's just the vehicle I like.
Now, it doesn't mean that you, as a student of mine, have to say, "I'm going to be a Nasdaq trader because Michael says this is what he likes." Let your own personality dictate what market you're going to trade, okay? But, if you're going to trade the indices, I mean, it's easier to find key levels and trust stop loss orders around price action that's like this than it is than of like the Nasdaq. Nasdaq's a little bit more wild, okay?
So, basically we we took out these smooth lows and we entered into a macro time, which is this line here. I'm highlighting the beginning of it at 1:50 p.m. Eastern Time and it ends at 2:10 p.m. Eastern Time. And eventually, once we got into here, started to roll over, we broke below these lows, came back up, and look at Look at it one more time. It reversed its role. Look how smooth that is. See that? Look at the bodies.
It's unbelievable, isn't it? And then it breaks lower and we go into an inversion fair value gap, which is over here. Scrunch this up a little bit more. And I took a first partial right below the inversion fair value gap there. You can see that fill. Then we came up and we worked inside the inversion fair value gap for a little bit of time, but eventually it popped outside of it to the upside, but it only went to a run inside of this SIVBI that has a volume imbalance right in there.
So, notice where the bodies are. Look at this. Notice how the bodies stop right at the high of the inversion fair value gap. That's these same candlesticks lows. And it's the very low of these candlesticks open. Okay, so we look at it like this. 7,754.50 And that's the same thing we get here on the close. 7,754.50 and it's the open on this one. 7,754.50 to the tick, baby. To the tick. Breaks lower, we create a little volume imbalance in here, comes back up in.
The bodies can't touch consequent encroachment of this inversion fair value gap, but it does wick through a little bit. And then it gives up the ghost, goes lower. If you watch the recording, which I'll add at the end of this little brief review, uh I highlighted this as an inversion fair value gap, drug it over. And again, same thing, the bodies respecting that to the tick. Look at the open. 7,751 even. The high on this candlestick. 7,751 even.
Okay? You You guys are are questioning me about what I think about order flow and what do I think about this, that, and the other thing. I made a comment today and apparently got under people's skin, but I don't care. I'm so tired of other people coming to me saying that they have something better than what I'm dealing. And I don't ever see them showing this type of precision. Like I just don't see it. And if I upset you today, you know, get over it.
You know, I'm not here to coddle your feelings. And I don't care if you unfollow me. I don't care if you watch my content. I don't care. Okay, but I I I'm tired of people literally asking me what I think about another concept or another approach or why don't I bring in something else. It's like some of you want to influence me. You want to be able to say I I told ICT about this and now he he's using that or something to that effect.
I'm past learning other stuff. Like I have the best of the best. And if that bothers you me saying that, then then that's something for you to wrestle with. I don't care. I'm not interested in anything else that anybody else is trading with. But this fair value gap here, buy side imbalance sell side inefficiency, when we're bearish, he's going to trade down through that and come back up and treat it as a premium array.
And then eventually work its way below the sell side liquidity pool. Eventually we get that run below. I take another partial here. It comes right back up. Breaks lower. Takes the sell side out right there. There's the partial right underneath the line. And I take the singles off here as it's going lower. And then finally all the way down here it's just before those relative equal lows right there. Okay? And then eventually, look what it does.
Comes all the way back up here and then breaks lower once more. And then right back up to the same levels. And now it's real thin right now overnight. Look at the 15-second time frame. There you go. And then for 1-minute basis you can see what we've been doing is chopping wood, going sideways. So, we have CPI tomorrow 8:30 Eastern time. Uh I'm not going to even begin to begin I'm not even going to begin to go into a guestimate on what I think the market may do.
I never really get these right when it comes to CPI or PPI numbers. I've done it in the past just for fun to try to predict what it is. And let me also toss this out there. Uh this morning I shared a tweet. I initially put the number out incorrectly. And it was basically 29,984. I genuinely wanted to see that traded to in Nasdaq. And while it didn't offer me that, I did trade to the low in the morning session and pulled out the equivalent of 30k in price action.
And and that stopped me out in the black with the balance. And then I went into 15-second scalping just to show you that you know, I don't have to have what I need in the beginning is a objective where I'm trying to look for. And the market is simply at 9:30 just went lower. Okay, so it is what it is. There's no excuses. It says it didn't give me something to frame a setup. But I went in there and traded the low, didn't I?
So, and then I went into S&P. Now, why did I trade the S&P? I traded the S&P because I had comments given to me saying that I only use the NQ cuz it only works in the NQ. It doesn't just work in the NQ. It works in Forex. It works in commodities. It works in bonds. It works in I'm not going to say crypto, but it works in all the markets. The things I'm teaching, it it's they're very universal approach. So, yeah, I don't I don't know I don't know what else to tell you >> [laughter] >> other than that.
I'm going to just try to focus on what I'm willing to talk about and teach. And I don't care what your your favorite personality on the internet can trade like. You know, I I don't I don't personally care. I'm not impressed by anybody else. I don't think that there's anybody else out there that can beat what I got. And it is what it is. You can think that's arrogance. You can think whatever you want to think it is. It's just I'm in my own space.
I'm minding my own business. When people ask me what my opinion is and they frame it with a really rude comment, don't be upset when I come back with it and backhand you and tell you it's Mickey Mouse because everything else out there in analysis concepts is literally Mickey Mouse level. It's comedy. It's It's cartoonish. And I know because I tried everything. I've done all that stuff. I've done order flow. I've done footprints and I looked at ladders and DOMs and depths of market and I've looked at supply and demand.
I've looked at Wyckoff. I've looked at Elliott Wave. I've looked at point and figures. I looked at Hurst cycles. I looked at everything out there. Everything. And nothing come close to this. Okay? Um I I don't know what else to say, but I don't want my content loaded with this stuff anymore. Okay? So, over the next 2 years, I kind of like want to focus on what I want to teach, present it to the community. You all can take what you want from it that you like.
And you know, if you have heroes out there that you want to worship or if you were pretending to be a hero and you think you can do better than this, okay, then present it to the world. Earn your clout on your own merit. You got to do it your own on your own steam, okay? Because up to now, nobody's ever stepped up and nobody asked for it either, did they? So, I'm going to leave this portion of the audio commentary and go into the the complete unedited There is no audio, okay, but you're watching it in real time.
I sped up the execution today, so that way you can get on to X with it and get about my business. But, you'll you'll be able to watch the full execution and then how it was managed and every little facet that was you know, going on on the way. So, what I want you to do is watch how price delivers and you think about what you would expect as each individual candlestick, which is going to be a 15-second time frame. Each candlestick represents the highest high and the lowest low, where we open and close for 15 seconds.
It's a very, very small interval of time, but it's not moving any faster than what you would see on a 1-minute chart or an hourly chart. But, when you're looking at for the sake of PD arrays and key levels, it gives the illusion that it's moving faster when it's not moving any faster at all. So, hopefully you found this insightful. Until I talk to you next time, be safe. >> Mhm.
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