SPX500 trade ideas
S&P500 vs Unemployment vs Yield CurveI'd be surprised if that was the bottom in equities. 10yr/2yr is still coming out of inversion which historically is followed by a recession and a decline in equities, and we have unemployment remaining stubbornly low with only one direction to go from current levels. Market selloffs usually mean investors lose money while main street loses jobs so we should start to see the unemployment rate begin to rise from here assuming that the tariff war isn't over.
Trump proved today that he has no intention of relenting on the new tariffs; when China retaliated with 34% tariffs on US goods, he immediately hit them with 50% tariffs. Not sure which side will cave first, but as long as there is uncertainty around US/China trade the risk for further declines in equities remains.
The previous two times the yield curve inverted, we saw 50%+ declines in equities and rising unemployment when the curve came out of inversion. There was also a short-lived inversion in 2019 with a spike in unemployment and falling equity prices due to Covid, but the Federal Reserve lowering interest rates to 0% and printing trillions of dollars kept that bear market short and sweet.
We currently have a Federal Reserve that needs higher rates to fight inflation while at the same time we have a president who wants lower rates to stimulate growth. Catch-22 for the Fed: if they lower rates, they risk reigniting inflation. If they raise rates or keep them flat during a market decline it will speed up the decline in equities. Trump knows this which is why I don't think that the tariff war and market decline are over.
S&P INTRADAY oversold bounce backTrump threatened a 50% import tax on China, adding confusion over his global tariffs. China promised to hit back and moved to support its markets.
Stocks bounced slightly as investors looked for bargains, but uncertainty around U.S. trade policy remains. U.S. Treasuries rose after falling on Monday.
Wall Street is getting more cautious. BlackRock downgraded U.S. stocks, and Goldman Sachs warned the selloff could turn into a longer bear market.
Key Support and Resistance Levels
Resistance Level 1: 5273
Resistance Level 2: 5379
Resistance Level 3: 5510
Support Level 1: 4815
Support Level 2: 4700
Support Level 3: 4585
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SPX WEEKLY SUPPORTIn this chart, you can see the weekly volume supports and the key support points for each bounce and buy. We have not yet completed the weekly selling to determine the distribution
Potential Targets:
August 2023 Volume Area โ ~5,076
2020 COVID Lows / Support Zone โ ~4,370
2016 Trump Tariffs Level โ ~3,641
2008 Financial Crisis Support โ ~2,308
Look there is our bottom :)I loved my title :) haha if you're reading this: I intrigued you! And I made you read it. โบ๏ธ thankyou!
Ok, This is what I think about why we might be near the bottom.
The 200 EMA on a weekly scale has been a very selective indicator to indicate this. Above, you can see how the chart touches the candle when the market is oversold (as indicated by RSI below). You can see that it repeats itself in sharp, spike-like, and short-term decline: marked by the yellow circles on the chart.
And finally, the volume indicates, with blue dot lines, the high and medium volume levels. There's no hay below. And we just entered HIGH :) This is going to get even more interesting... and sharp ๐ โ๐ผ
Bulls are not of the woods, not by far1. What happened yesterday?
In my weekend analysis covering US indices , I mentioned that US500 (SP500) could drop and test the ascending trend line starting back at the pandemic low. This line is confluent with the horizontal support level given by January 2022 ATH, offering a good opportunity for traders to open long positions.
Indeed, at least on CFDs and futures, this trend line was touched, and the price rebounded strongly from there.
2. Key Question:
Will we have a full V-shape recovery, or will the price drop back below 5k in the coming sessions?
3. Why I expect a continuation of the correction:
๐ธ Strong Resistance: The US500 has established a robust ceiling around the 5350-5400 zone(also a gap there)
๐ธ Lack of Building Momentum on Support: There's no clear indication that this resistance will be broken anytime soon with the lack of accumulation under 5k
๐ธ Potential for Further Decline: Given the current market structure, a drop below 5k remains a realistic possibility in the upcoming sessions.
4. Trading Plan:
๐ฏ My Strategy: Playing the range.
โ
Buy near the 4800 support.
โ
Sell into the resistance zone between 5350 and 5400.
5. Conclusion:
Iโm watching for market confirmations and will continue applying this range strategy until thereโs a clear directional change. ๐
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
Could the US500 be setting up for a bounce?Hello,
The US500 is trading near the trend line, a key area where technical investors will be looking for a bounce back. While the current market remains choppy due to tariffs from the US president, technical analysis does offer us key areas where we can look for entries going forward.
What is certain is that this is not the time to panic and sell all your held positions. As always, during moments like these composure + a clear plan are your best line of defence. Probabilistic thinking as well can go a long way in identifying great opportunities. Weโre all dealing with known and unknown variables now, and thereโs no shame in saying, "I donโt know."
For me I see opportunities in the S&P especially because the news is already out. Additionally, we are coming into earnings season when the market is at the bottom. Companies that show resilience will attract early investors and the index will bounce back. So please keep your long-term view.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
[S&P500] 2008-Style Collapse in MotionI believe we are witnessing the early stages of a 2008-style crash, though this one will unfold more swiftly and catch many by surprise. The crash will likely test the COVID-era lows, and once the panic subsides, a recovery toward new highs will follow.
FUNDAMENTAL REASONS
After the COVID-crash recovery, the market became significantly overbought, and a pullback was inevitableโsuch is the nature of markets. Trumpโs tariffs have provided a convenient excuse for profit-taking. While the tariffs didnโt directly cause the crash, they served as a much-needed catalyst. What might have been a typical bull market pullback, however, could escalate into full-blown panic.
Why? Index funds.
For the past decade, there has been near-religious advocacy for investing solely in low-cost index funds. This extraordinary delusion has overtaken investorsโ collective consciousnessโthe belief that no one can beat the S&P 500, nor should they try. The most rational choice, then, becomes focusing on your career or business and parking your money in index funds. After all, if the game canโt be beaten, why bother playing? This logic resonates with rational index fund buyersโmany of whom lack market experience and have never been tested in the trenches of a downturn. They assume theyโre in it for the long haul, unbothered by pullbacks, confident they can hold through volatility. Itโs a sound and logical stance.
But will they hold? Itโs easy to stay committed when the market is rising. When losses mount, however, the limbic system overrides rational thought, thrusting you into survival mode. You begin calculating how many years of work youโve โlost,โ lamenting that you could have bought a house if youโd sold at the peak, or watching your childrenโs college fund evaporate. Sleepless nights follow, compounded by a barrage of negative news. Eventually, exhaustion sets in, and in a desperate bid to salvage what remains, you hit the sell button.
With so many unsophisticated investorsโwho have never endured a true market panicโholding portfolios dominated by index funds, a negative feedback loop emerges. The further the market falls, the more people question their strategy and sell. This cycle intensifies until the panic is overdone, weak hands are shaken out, and the market stabilizes. Itโs a tale as old as markets themselves, though todayโs index fund evangelists have yet to experience it firsthand.
TECHNICAL REASONS
On the monthly chart, a clear and potent triple RSI divergence stands out. This indicates the market is severely overbought and has been struggling to make new highs.
While technical analysis rarely delivers definitive signals and can often be ambiguous, a triple RSI divergence on a monthly chart is as strong as it gets. Monthly charts of high-market-cap indices are immune to manipulation and short-term noiseโit would take an infinite amount of capital to artificially โdrawโ such a pattern.
The 2021-2022 pullback was an Elliott Wave impulsive wave down (a Leading Diagonal). In Elliott Wave Theory, impulsive waves mark either the final leg of a correction or the first wave of a new trend. A Leading Diagonal almost always signals the latterโmeaning another impulsive wave in the same direction is likely to follow.
The 2022-2025 bull market, meanwhile, has proven to be an ABC corrective wave up within the broader trend. This suggests the bull run wasnโt a continuation of the prior uptrend but rather an extended correction that pushed to new highs.
Thus, the leading diagonal down foreshadows another impulsive wave lower, and the corrective wave up confirms this trajectory. Since March 2025, the market has entered free-fall modeโprecisely what one would expect following an upward corrective wave.
This sets the stage for a high-probability Elliott Wave Expanding Flat pattern. Whatโs unfolding now is an impulsive wave down that should, at minimum, retest the 2022 low. If panic takes hold, however, the decline wonโt find a floor until it hits a major support levelโnamely, the 200-month moving average (MA200 Monthly), which sits precisely at the COVID bottom. Should that occur, the magnitude of the drop would rival the 2008 crash.
June 2026 Sp500 will be at 7000 pipsThis is a corrective move. Trump wanted this to deal with the US debt. Everything is smoke a Trump crash. Nothing else.
In June 2026 Sp500 will top at 7000 pips in a massive EW 5.
Now we are in EW 4. It will take some time to settle the dust as you can see.
Be ready, because after Sp500 bottoms out around 4700-4900 pips we will see a MOASS in the next year.
After that, be ready, as well, to see a massive crash to 2500 pips that we will see at the end of 2028.
Stocks well off earlier highsWhile Trump's earlier post had lifted sentiment, things have now unraveled again as Trade uncertainty continues to weigh on sentiment. S&P almost flat on the session after failing to break yesterday's high. Let's see if dip buyers emerge later on. For now trading remains quite choppy as reciprocal tariffs are set to go into effect tomorrow, along with those additional tariffs on China.
With trading so choppy, best to trade from level to level and exit on first sign of trouble. Lots of volatility = lots of trading opportunity, but if you are not careful, the choppiness could seriously dent your trading capital.
By Fawad Razaqzada, market analyst with FOREX.com
SPX500 Short at M5 supply zone due to tariffs uncertainty
Market overview and macro outlook
Rise in the equities market mainly due to the possibility of a 90 days postponement of the tariffs
1. What can kill this optimism: A single Trump administration comment otherwise.
2. We've risen by close to 8% from the lows.
3. Until the postponement is confirmed, i don't think there's much upside, thus, the risk is to the upside, and we should be looking for downside trades now
Upcoming news
1. FOMC meeting on Wed - probably to the downside as it should be comments on keeping rates high to combat the tariffs uncertainty
2. US CPI/Unemployment on Thu - TBD
- If high CPI - good for equities as it raises probability of interest rates cut
- If high unemployment - good for equities as it raises probability of interest rates cut
3. US Core PPI on Fri - TBD
- If high PPI - good for equities as it raises probability of interest rates cut
Thus, I have a bearish view of the market and look to take Short positions here.
Technical View
At a higher time frame, I want to see price hit 5500 for a short position then.
In the short term of today and tomorrow, I want to see prices hit 5267 for me to take a Short position - there's a Supply zone there from the M5 TF.
SL: 5300 (Above supply zone and a major psychological point)
TP: 5130 (Slightly above the lows of the previous trading zone before the breakout)
Execution
1. Limit order
- SL: 5300 (Above supply zone and a major psychological point)
- TP: 5130 (Slightly above the lows of the previous trading zone before the breakout)
- TF: Close limit order before CPI or PPI reports. If no entry by then
Results of ideas thus far:
Number of trades: 2
WR: 0%
Profit: -1.1R
Notes: This is currently for personal practice to write out trade ideas. Feedback is welcome, and please don't mind if none of this makes sense.
SP500: Is This the 2025 Correction? Or Just Another Bounce?Looking at the weekly chart of the S&P 500 with RSI and key support trendlines, itโs clear weโve entered a historically important level.
๐ Context:
2020 โ COVID Crash, RSI bottomed ๐ฅ
2022 โ Bear Market, RSI again flagged a major drop ๐
2023 โ Healthy correction, price respected trendline support
2025? โ RSI flashing oversold, price testing the long-term trendline again.
๐ RSI is approaching the same low levels as the previous two macro shocks โ is this a signal of another reversal opportunity? Or could this time be different?
๐จ If we break below this trendline convincingly, it could open the door for a deeper bear leg. But if we hold, we might just see another bounce-back rally like in 2020 and 2022.
๐ Watch for confirmation:
A strong bounce with bullish RSI divergence = potential long
Breakdown + volume spike = more downside ahead
Letโs see if the trendline holds up โ it has for 5 yearsโฆ ๐
#SP500 #Correction #BearMarket #RSI #TechnicalAnalysis #MarketUpdate #2025Outlook #StockMarketIdeas
Has SPX formed a bottom?SPX500USD - 24h expiry
Price action looks to be forming a bottom.
A Doji style candle has been posted from the base.
Setbacks should be limited to yesterday's low.
We look to buy dips.
Risk/Reward would be poor to call a buy from current levels.
We look to Buy at 4900.5 (stop at 4767.5)
Our profit targets will be 5295.5 and 5365.5
Resistance: 5219.6 / 5350.0 / 5500.0
Support: 5100.0 / 5000.0 / 4812.2
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (โOAPโ) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
I May Have this Bull Idea Horribly WrongI know it looks good at this exact moment in time but that spike move we just had was so sus. It's really the sort of thing I expect to be dealing with when following a downtrend.
Sell > big profit.
Sell > big profit
Sell > WTF was that
Oh correction > Sell > Big profit.
I could stack up odds that put the odds of a rally in this area at around 90% (Which is crazy high for the way I estimate odds).
But that might have been it. I may have terribly misjudged how deep it would be.
If I have this wrong, 4500 in MIN I've expect to hit and if that level breaks we might capitulate to 3000.
EXTREMELY STRONG WARNING TO ANYONE USING ANY OF THE BULL IDEAS I'VE EXPESSED.
If they're good, they'll be good and easy - and if not, ditch the ideas! They would be predicted to fail spectacularly if wrong.
Probably around 5170 area.
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Stop Loss ๐:
๐Thief SL placed at the nearest/swing High or Low level Using the 1D timeframe (5500) Day/Swing trade basis.
๐SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
Target ๐ฏ: 4750 (or) Escape Before the Target
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