Spysignals
S&P500: Key Support Level for SPY Bulls to DefendThe S&P 500 been gradually breaking downwards since peaking in July. AMEX:SPY has reached the bottom of this red parallel channel last week. This is a key support level that has been providing strong support, and I think SPY bulls need to defend this price level this week. The RSI is oversold so the conditions are good for a rebound here.
Nice move up caught on the S&PHey traders!
So here you will see this bullish candle where the blue arrow is pointed on the 4h chart on the S&P, this trade made an easy $15,700 with a more aggressive risk of 10% of capital but with basically 0% drawdown.
My team and i noticed something big about this candle that 90% of traders miss and i mean big! especially if you trade options. Did you notice what was going on with this candle that was so big?.
Follow for regular trade insights, ideas and more.
Moving Average Free Options MethodSimple to use on the 15 minute to Daily chart. When the Emas cross with green on the top buy calls within $2 strike. When cross with red on the top buy puts within $2 strike. Bottom Mac'd Ema difference should also be same color as top Ema. Green/Green or Red/Red. Any light blue line Ema or Sma can be support or resistance so be prepared to sell. Buy time never buy contracts that expire that day. Greeks will burn you. Support and resistance are the green and red stripes across the chart(also sell or buy points. Ideally enter on the 5 minute chart then switch to the 15 minute or half hour chart to eliminate noise. Happy trading.
The two ways this plays out. Both are badHey there friends!
As you can see, I have two resistance trendlines plotted. Both historically have been respected very reasonably. On top of this, id like to mention that my software that signals weakness in the market has been triggered. Although it doesnt 100% predict the absolute top, it does show where weakness is and you can see how it has preformed in the past. With this said, as we test the first of the 2 trendline resistances of this massive megaphone AND test the resistance trendline of the ascending channel, I expect some kind of retrace.
The target would be assumed to be the bottom of the ascending channel, which would be 3836. From there we will see one of two things. Either a breakout of the ascending channel or a bounce from the support line to send us up to test the second of the resistance trendlines in the descending megaphone. If we bounce, im certain it will also test the resistance trendline of the ascending channel. This would line up to be on December 1st with a target of about 4110.
If instead we breakout of the ascending channel when we head down, the target would be 3300 based purely on TA of the ascending channel. But i would like to mention that whenever we find a top, we reject -16.50% in 45 days (this has happened the last two times)
If we go based on that the target would be more like 3200.
Stay fluid friends. Were in for a volatile time