Last night I expressed doubt if the price will be able to slice through the upper trend line, but we have a confirmation today with a huge push upwards putting the price dangerously close to the 3500 rejection zone.
As indicated the bull case of hitting a new ATH is only possible if all the 3 conditions are met. Any weakness and we will be back down to the lower end of the channel.
Be careful in taking new positions when the price is near support and resistance zones. It doubles your risk
My bearish case is still valid because the upward push happened in less than 5 trading days making this move highly speculative and unsustainable.
*I'm holding puts for next week.
Thank you for reading.
As indicated the bull case of hitting a new ATH is only possible if all the 3 conditions are met. Any weakness and we will be back down to the lower end of the channel.
Be careful in taking new positions when the price is near support and resistance zones. It doubles your risk
My bearish case is still valid because the upward push happened in less than 5 trading days making this move highly speculative and unsustainable.
*I'm holding puts for next week.
Thank you for reading.
Note
Zone to watch- 3500-3513.Note
Disclosure about my trade setup. I am holding both calls and puts. leaning heavily to the puts. with expirations ranging from next week to Nv 20.
Note
Important Technical Update:The MACD crossed over below the zero line and looking at the past data such a crossover is accompanied by an average gain of 200 poins on the SPX index.
Keep this in consideration before taking your trades.
It may be a false signal as we are about a see a bearish crossover on smaller time frames (1h and below).
it's good to be informed either way.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.