I entered the market last week to take profits as the market popped to above 2718. Following this trade I am again Flat the S&P awaiting the next opportunity.
Recent talk of a trade war between the United States and China have stalled the upward trend in Soybeans. With this stall, support has formed around 1045 in the May 2018 contract. I have recently exited my long position in this market as I wait a resumption of a trend.
With support established around 2552 and resistance at 2680 being repeatedly tested, the market appears to be setting-up for a move higher. The question is will this market desire to move higher out-weigh the influence of world political events.
Amid uncertainty regarding talk of trade tariffs, the S&P remained range-bound this week. My system had me remain out of the market this week, awaiting the emergence of market conviction in either direction.
After falling over 5% the previous week, the S&P June contract spend this past week directionless as it contemplates the direction of it’s next move. I exited my Short position last week to enter the upcoming week Flat.