๐คGoing long or short on the S&P? Then watch these key levels๐
The whole world has their eyes on the S&P500 using it as a gauge for what type of recovery we will be getting.
The most important point on the chart is the 3,000~ area, this is acting as support on the 4-hour, daily and weekly.
If a single level is acting as support on multiple time-frames, itโs an area being watched by EVERYONE, people are looking to go short on a break or long on a bounce.
Monthly resistance is at the monthly all time high of 3,260~, we tested the area once and got rejected pretty sharply.
In June support was tested 5 times, and survived.
There are three ways I see the S&P playing out, Iโll start with bullish to bearish.
Bull case (green line) โ the bull case is that the S&P breaks through monthly resistance and goes on to make new highs, if it clearly broke the 3,260 area, any retest of the area would be a good time to go long.
Neutral case (blue line) โ currently the S&P500 is range bounding, it could carry on doing that for the next month between support and resistance.
Bearish case (white line) โ S&P breaks the major support level at 3,000 and goes to re-test the lows made in March. If it broke the 3,000, Iโll be looking to go short on an pull back to the 3,000 level.
The 3,000 area is a great place for fake outs and traps, because it's on everybody's chart.
just because the S&P goes below 3,000 does not mean itโs a single to go short, it has broken that area 5 times in June an pulled it back each time, trapping shorts.
I would like to see a few daily candles closes below 3,000 or above 3,260~ before entering any long or short trading position, if I see a trading opportunity I'll post it later this month.
Fear and greed are controlling the markets right now, with the FED keeping the S&P at these levels. News will be a major catalyst.
Enjoy my idea? then be sure to give my account a follow as I cover all major markets including, gold, bitcoin, silver, Forex and stock markets.
Have a question? Feel free to leave a comment, I aim to answer all questions :).
The most important point on the chart is the 3,000~ area, this is acting as support on the 4-hour, daily and weekly.
If a single level is acting as support on multiple time-frames, itโs an area being watched by EVERYONE, people are looking to go short on a break or long on a bounce.
Monthly resistance is at the monthly all time high of 3,260~, we tested the area once and got rejected pretty sharply.
In June support was tested 5 times, and survived.
There are three ways I see the S&P playing out, Iโll start with bullish to bearish.
Bull case (green line) โ the bull case is that the S&P breaks through monthly resistance and goes on to make new highs, if it clearly broke the 3,260 area, any retest of the area would be a good time to go long.
Neutral case (blue line) โ currently the S&P500 is range bounding, it could carry on doing that for the next month between support and resistance.
Bearish case (white line) โ S&P breaks the major support level at 3,000 and goes to re-test the lows made in March. If it broke the 3,000, Iโll be looking to go short on an pull back to the 3,000 level.
The 3,000 area is a great place for fake outs and traps, because it's on everybody's chart.
just because the S&P goes below 3,000 does not mean itโs a single to go short, it has broken that area 5 times in June an pulled it back each time, trapping shorts.
I would like to see a few daily candles closes below 3,000 or above 3,260~ before entering any long or short trading position, if I see a trading opportunity I'll post it later this month.
Fear and greed are controlling the markets right now, with the FED keeping the S&P at these levels. News will be a major catalyst.
Enjoy my idea? then be sure to give my account a follow as I cover all major markets including, gold, bitcoin, silver, Forex and stock markets.
Have a question? Feel free to leave a comment, I aim to answer all questions :).