Spx500usdlong
SPX500USD - Positioning for 2022The Virus had set the stock cycle quite accurate in the last 2 years.
It seems we have 2 intermediate cycle low in a year:
1. one of them is very severe and it comes at the beginning of the year ( highlighted by red arrow) This is also a yearly low and drops close to the previous year's normal ICL
2020.03.23.
2021.03. 05 .
2022. 01 .24.
2. the other one is "just" a normal ICL (highlighted by blue)
2020.09.21.
2021.10.04.
2022.09....?
The next "normal " ICL will be due only at the end of summer, most probably in September.
So when the ICL is printed you just need start a long position .
The chance is high we printed the lows yesterday. Notice the brutal volume we are having at these lows.
We had a similar setup in 2018 December. After the reversal candle on the next day we had a pullback where you could enter for the next ICL:
Use today's pullback for an entry:
Calling local Bottom hereIn my previous SPX500 analysis, I mentioned about the upcoming downward movement along with saying about the importance of fib levels present in the current region. The wave structure I mentioned before seems to be around completion. I would be looking for a long opportunity in this region.
BUY SPX500USD Good morning traders ! Today we woke up on a signal to buy SPX500USD, as you can see on the chart we had a high volume spring box ( as I call it in my method ) which is an enough signal to buy, then we got a confirmation to buy when the price broke the channel with a high vloume candle. Buy it now and take as much as you can from the market.
SL and TP place them on your own !
SPX - TRADING PLANLooking at the 4hr SPX500USD chart I have found a couple of price levels where price may reach for and target before hitting the 5000 mark.
We see price has been consolidating for some time now and making volatile moves both up and down. This has created and left liquidity pools which I believe should and could be reached for. The dashed trendlines showcase the areas where there is liquidity sitting and are also in places where I have identified an inefficiency.
Thus, I believe price could come down even more and target these before moving up strongly and quickly.
Another confirmation of another move and down here is the head and shoulders pattern formed by the market.
Although I anticipate a drop in the market, I will not be selling until I see a valid setup and will mainly be focused on securing the buy.
There are 3 potential trade ideas here. The first one has a more aggressive stop loss to maintain a good risk to reward while the 2nd one has the same entry but a more conservative stop loss.
The 3rd entry is very deep into the retracement and may not be filled hence the earlier entries.
I personally will be placing 1% risk on the first, 0.5% on the second and 1% on the third; giving us a maximum of 2.5% loss.
The black horizontal lines represent my take profit areas.
DISCLAIMER: I am not a financial advisor and nor is this financial advice. Only risk what you can afford to lose and this type of speculative trading can result in loss and/or profits.
SPX500 TRADING PLAN - BUYLooking for s&p to fill in the imbalance and potentially run higher.
2 entries have been identified, one where price could tap into the imbalance (which is also a quarter point level) and run higher
The other, price could retrace into the daily orderblock and then run higher, this entry provides a better R:R
DISCLAIMER: I am not a financial advisor and nor is this financial advice.
ConclusionAt the morning I posted the the S&P will go long but it didn't, unfortunately it decided to stay consolidating in the channel you see in the picture, by going to the daily chart we have a beautiful spring box which is an acceleration of the bullish trend.
See you tomorrow in a new forecast !