April 3 Recap - After ES Monster 300pt sell, what the hell do we do now?

2 Trades, 2 Winners... And we wait

Liquidity brings Volatility.
Volatility brings Opportunity

Only take the Grade A+ setups on ES.

Welp, we got the volatility.

Let’s start with yesterday, because that’s really how all this started.

ES price was amazing for bulls April 2 from 9:30 to 4:15PM EST.

Here’s what I wrote in the AM’s letter:

After bottoming at 5010 and reclaiming 5620, we rallied to 5636, pulled back to 5675, before reaching a high of 5773.

Throughout the entire day, I held my runner from 5545, with a stop moved from 5585 to 5600, and ultimately 5665.

At 1:11PM we found a high inside the 5734-5748 level at 39 and sold off to 5673, a 67 point sell in 1hr 15 minutes. We double bottomed at 5675 before ultimately reaching a 5773.25 high at 4:15PM.

We actually blew thru 5700, all the way down to test Wednesday 2:30 AM high and 11:15/11:50AM low at the 5675 price.

We “quadruple bottomed” inside this level, started diverging inside the 15 minute demand zone seen below and that was all she wrote:

That is until 4:17PM when price tagged the 5771.50-5783 Supply area noted on the chart as a MAJOR Fed Test area highlighted in pink here: 45 Min Chart For Reference:

The market wanted nothing to do with Trump’s “America deserves free treatment” and “rebalancing” sentiment. While I generally abstain from politics or news as far as trading goes, it’s difficult to ignore the following:

Trump’s Tariff announcement.

Quick notes here:
* EU tariffs will be 20%
* China will be levied an additional 34%, on top of the 20% in place— bringing its new rate to 54%.
*About 60 countries will see tariffs higher than 10%
*Mexico had one of the best days on record as they were spared additional tariffs.

And most importantly when I opened the chart this AM, ES was down nearly 4%.

I started the day with the following chart:

Noting the following in this AM’s newsletter:

Likely Supports For 4/3 are: 5510 (reclaim), 5500(D), 5498, 5485 (D)

This idea of a reclaim, we’ve spelt out multiple times. As price attempted to find a bottom, the first opportunity that was given to us. Displaying a bottom was accepted, a new high was put in place, and we respected the existing rally at 5510 was the reclaim