Given the magnitude of last week’s decline and the lack of follow-through in the recovery on Friday, there is potential for further market decline. With this in-mind we will be watching downward momentum early in the trading session, to gauge the potential for further profitable trades from this market correction.
Ahead of today’s Fed decision, Tuesday was a volatile day as volumes were low and we saw an early day rally fizzle-out. We remain Long the S&P with the market having already baked-in a rate hike today.
The S&P continues to march upward, approaching new highs, on the back of a strong US economy. We are trading the December contract upward with stops near the support level of 2870.
The S&P trend remains bullish however the index remained within it’s recent consolidation range this week.
The recent advance in the June S&P contract ran into consolidation as investors became uncertain amid continued political trade uncertainties. I took profits this week and remain on the sidelines awaiting the next market move.
Entering the weekend I went Long the June 2018 S&P contract as it broke above resistance @ 2718.
This week the S&P remained range-bound with a brief move to the downside on Thursday. We were able to enter the market for a day trade & capture profits during this brief move but remain Flat today looking for a major move in either direction.
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.
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.