S&P 500 IndexShort
XSP Options short, Long put
Updated
I'm conscious of how price has behaved around the highlighted pivot zone. This could be a good spot for strong rejection.
Momentum
indicators are showing a loss of momentum on low time-frames, and we have failed to break resistance for a couple of days.
Volume
We are now seeing a pronounced drop of buy volume visible on the daily and hourly charts which could indicate trend exhaustion is possible.
Time analysis: TD sequential on a green 7, unlikely to complete a full cycle, which could mean a slow and steady breakdown rather than a rapid selloff. This could mean
Momentum: MACD histogram is negative. RSI is constantly posting lower highs, and lower lows
overall sentiment on trend on lower timeframes is uncertain (previously bullish) and on longer timeframes remains bearish.
Momentum
indicators are showing a loss of momentum on low time-frames, and we have failed to break resistance for a couple of days.
Volume
We are now seeing a pronounced drop of buy volume visible on the daily and hourly charts which could indicate trend exhaustion is possible.
Time analysis: TD sequential on a green 7, unlikely to complete a full cycle, which could mean a slow and steady breakdown rather than a rapid selloff. This could mean
Momentum: MACD histogram is negative. RSI is constantly posting lower highs, and lower lows
overall sentiment on trend on lower timeframes is uncertain (previously bullish) and on longer timeframes remains bearish.
Trade active
Took a little longer than I expected to reverse, not happy with my entry, I should have been more patient. I've decided to keep this in play however.
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