SPX Declines but Traders Win on the Long Side
The $SPX hit a 1366.59 intraday high on Tuesday after the reversal from the 1331.29 low last Thursday (6/12). The market action on this reversal has not been strong though…
Keep it Simple to Stay Profitable
The $SPX reversed from a key price and time zone last week, as anticipated in the previous commentary (Short Term Reversal Zone), and closed the week at 1360.03 after bouncing off the 1331.29 low.
Short Term Reversal Zone
In today’s market analysis, the $SPX traded down to the 1349-1326 key price and time zone yesterday with a 1335.47 low and closed at 1335.49. Crude oil up higher, edging back toward highs while the US Dollar strengthens.
Three Key Trading Strategies in Action Yesterday
Volatility was the game last week as the $SPX went +1.9% on Thursday, and -3.1% on Fri. Bernanke and Treasury Secretary Paulson tried to talk up the dollar, but a jump in unemployment and soaring oil prices countered their efforts.
Best Strategies for Daytraders in this Market
The $SPX has advanced for four straight days into month end on Friday, and is down all three days this week with added pressure from weakness in the financial sector and energy sector.
Trade the Reaction to the News, Not the News Itself
The “Generals” were true to form last week and the anticipated mark-up has resulted in 4 straight up days and +1.7% for the shortened week.
What’s Next After Month End
The market internals were ST-O/S starting the week, and the $SPX went trend up Tuesday in the afternoon to finish at 1385.35 (+0.7), while the $INDU was +0.6, QQQQ +1.8, and $COMPX +1.5.
Short Term O/S and Month End Bias is Up
The anticipated reversal accelerated Friday with the $SPX -1.3% as it hit a 1373.72 intraday low, which is -4.6% from its 1440.24 rally high. It closed at 1375.93.
High Probability Trading Strategy
The anticipated reversal “red alert” described in the previous commentary is in progress, and the $SPX hit a 1388.81 intraday low on Wednesday, which is -3.6% from the 1440.24 Monday high of the current rally.
Key Sector Risk for the $SPX
The $SPX had a great travel range for daytraders yesterday with a “V” move from 1423.40 to 1440.24 on the 1:25PM bar, and then the programs hit and it declined to 1421.63 before closing at 1426.63.
A Strategy You Must Learn
The $SPX made a double bottom in the first 45 minutes of trading, just above the 1406.71 200DEMA and 1406 H&S neckline resistance and the trend went up.
Trader’s Primary Focus
Multiple signals are soon to come that may directly affect the market. See what they are and what you can expect from them.