V1:W2_S&P500_Levels of Interest_Great trades await us.The daily chart is telling us two things. Things or getting ready to get nasty or we are getting ready to recover. We will know after tomorrows action but until then direction is at the mercy of the market. Daily chart shows an immediate need for caution on the bull side. Our 14 and 50 EMAs have rolled over indicating we are due for a couple week of sideways action before this pullback corrects itself. Not to mention our RSI is steadily under 50.
As noted early last week and respected, the bottom found around 2705 put in is very strong. Buys should be considered but you must be prepared for a deeper pullback. Keep stops tight and let it play out. There is big money ready to buy those lows, I suspect we don't stay down there long but you can never be sure. Until the lows are tested I will be shorting into strength for there is zero reasons to hold longs right now based on the chart.
I've trained my eyes to watch for 30 min trend changes around pivotal institutional times like, 9:30, 11AM, 12:30 and 2 PM Eastern.Sundays overnight session was a perfect example of how overnight sessions tend to drift in the opposite direction of institutional flow once the flood gates hit at 9:30.
Currently my plan consists of buying the low into one of those major reversal times listed above or shorting the high into one of those times given indicators and conditions are ideal.
Trade well! Updates will be posted end of day along with PnL.
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