US500 trade ideas
S&P500 - Downtrend - Support Level 5259Based on my chart, SP:SPX showing downtrend with a Strong Support Level of 5259. If it fails to hold this level, I won't be surprised to see SP:SPX at 4759.
Considering the factors Technical (Indicators showing bearish trend) & Fundamental (Tariffs, earnings, Fed's negative data etc.)
Trade War PerspectiveSure, tune in to your favorite youtube finance doomer or the news, and it will sound like the end of the world has arrived.
I personally feel like this tariff crisis is cover to air out all the dirty laundry that's been hidden the last few years. The AI bubble, the stimmy repayment, the imaginary gold, the "forgot how to grow economy" (credit that last one to Eurodollar University), etc etc.
Take a look at this chart. If this is "the end" we have BARELY begun the descent. These types of corrections happen routinely. The point is, don't panic. STICK TO YOUR STRATEGY and don't get emotional.
Good luck out there. Don't get flushed down the tariff toilet.
Strong Buying Zone with Confident The Green 4h Zone Acts as Strong Buying Zone.
The Blue Zone POC/IC (Point Of Interest or Institutional Candle) is weak Support now since it been tested before.
The Fresh Zone is the Green 4h which acts as Decent Support Zone.
We have two Scenarios indicating Buyers step in Strongly Within Green Buying Zone:
Scenarios One: strong buying volume reversal Candle.
Scenarios Two: Fake Break-Out of green Buying Zone.
Both indicate Buyers Stepping in strongly.
Once One Showed Up a safe entry would be 50% Fibo from the buying Candle at 1h TF.
Regards,
Take care.
3/4/25 Trump Reciprocal Tariffs
Yesterday's candlestick opened lower but reversed to close as a big bull bar in its upper half with a prominent tail above.
However, the market traded significantly lower after the market closed. The market will open lower than the March 13 low today.
Again, the bulls hope buyers are below the gap down, similar to March 31st and yesterday April 2nd.
They want any follow-through selling to be limited, and the market to trade up after that.
The bears hope to get follow-through selling after a brief pullback. They want the market to close near its low.
Usually, when the market is opening significantly lower, which means that there are a lot of sell orders at the open.
The market makers have to quote a price they are willing to buy for the stocks that they are trading. Usually, that price is near the day's low.
So, at the open, if you are buying stocks that are gapping down, you are buying with the market maker.
After the market opens, if there is no fresh selling, the market may then slowly float up, letting the market maker slowly clear off their position (remember, they bought at the open, buying when everyone has put an order to sell at the open).
However, if there is fresh selling, the market then may continue to sell off after a brief pullback. If this is the case, then it can be a bearish day.
The reason is that the market maker has been caught long at the open, and the fresh selling continues to push prices past their entry.
The next price they would want to buy would be much lower. So if there are fresh large selling orders in the respective stocks after the market opens, the market makers would bid a lot lower so that they are not run over by a freight train.
For today, traders will see if buyers will buy the gap down open like they did on March 31st and April 2nd.
Or will the market form a brief pullback, and then continue to selloff into the close? If this is the case, the market may not be in a good place moving forward.
$SPX - Top of the MountainSPX is once again, since its uptrend began on 11/06/2023, breaking below the 3-month simple moving average and now also the Monthly Heiken Ashi average (black stepped line).
This time, it seems to have the conditions to start its descent from the mountain and confirm that we reached the top on 02/18/2025.
Looking at the vast majority of stocks in today’s pre-market, this appears to be the scenario.
And this impacts my recent positions. In this scenario, it will seek the 1-year simple moving average, where it should make a pullback (HH or LH?).
Time for caution and to avoid new long entries.
Is 5,700 the New 6,000?The S&P 500 has struggled recently, and some traders may see risk of further downside.
The first pattern on today’s chart is the three-day jump above 5,700 early last week. The move peaked around the January low of 5,773. It also represented a false breakout above the November low of 5,696.50.
In other words, two former support levels have emerged as new resistance.
It’s also reminiscent of the price action in January and February, when failure to hold 6,000 triggered selling.
Next, last week’s high occurred at the 200-day simple moving average. That may suggest the longer-term uptrend has ended.
Third, the 8-day exponential moving average (EMA) has remained below the 21-day EMA. That may indicate that a shorter-term downtrend has begun.
Finally, given the weakening momentum, traders may start eyeing longer-term levels for potential support. One potential spot could be the September low of 5,403, followed by the August trough of 5,119.
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S&P INTRADAY bearish below 5636President Donald Trump imposed the highest U.S. tariffs in a century, aiming to reshape the global economy. This move triggered threats of retaliation and a sharp market selloff worldwide. Stock markets reacted quickly and negatively. U.S. equity futures dropped as investors worried about corporate earnings. European and Asian stocks also declined. The dollar fell to a five-month low, while investors sought safety in Treasury bonds, and the yen strengthened.
Key Support and Resistance Levels
Resistance Level 1: 5636
Resistance Level 2: 5713
Resistance Level 3: 5790
Support Level 1: 5413
Support Level 2: 5262
Support Level 3: 5200
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Understanding Market Downturns: How to Navigate the StormLately, the markets have been in a downtrend, leaving many traders and investors wondering what comes next. Whether it’s stocks, crypto, or other financial assets, downturns are an inevitable part of the game. While they can be unsettling, they also present opportunities—if you know how to navigate them.
Market declines happen for many reasons: economic slowdowns, geopolitical tensions, changes in interest rates, or even shifts in investor sentiment. Regardless of the cause, understanding the different types of market downturns, their impact, and the right strategies to handle them is key to making informed decisions.
So, let’s break down market downturns, how they unfold, and what you can do to stay ahead.
📊 DOWNTURN #1: Down -2% — A Ripple of Volatility
A -2% drop is like a minor speed bump—annoying but not alarming. These small dips are common and often part of natural market fluctuations.
✅ Key Characteristics:
• Typically short-lived and often recovers quickly.
• Can be triggered by minor news events, investor sentiment shifts, or profit-taking.
• Provides opportunities to enter positions at a slightly better price.
💡 Strategy:
• If you're a long-term investor, ignore these small movements. They are normal.
• If you're a trader, these dips can be buying opportunities in an uptrend.
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🔄 DOWNTURN #2: Down -5% — The Pullback Perspective
A 5% decline is often called a pullback—a temporary market retreat within an ongoing trend.
✅ Key Characteristics:
• Pullbacks often occur after strong rallies as the market cools off.
• Typically seen as healthy corrections in an overall uptrend.
• Not necessarily a signal of long-term weakness.
💡 Strategy:
• Long-term investors should hold steady and potentially add to positions.
• Swing traders may look for a bounce at key support levels (moving averages, previous highs/lows).
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🛑 DOWNTURN #3: Down -10% — Entering Correction Territory
When a market drops 10% from its recent high, it officially enters correction territory.
✅ Key Characteristics:
• Often caused by changes in economic outlook, inflation concerns, or major geopolitical events.
• Moving averages may start crossing downward, signaling caution.
• Momentum shifts, and bearish traders begin to take control.
💡 Strategy:
• If you’re a long-term investor, consider rebalancing your portfolio or hedging with defensive assets.
• Traders may look for short opportunities or play reversals at support levels.
• Be cautious with leverage—downturns can accelerate quickly.
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🐻 DOWNTURN #4: Down -20% — The Bear Market Looms
A 20% drop or more marks a bear market, signaling a significant shift in market sentiment.
✅ Key Characteristics:
• Confidence is shaken; investors turn risk-averse.
• Defensive sectors (utilities, consumer staples, healthcare) tend to outperform.
• Market psychology shifts from "buying the dip" to "protecting capital."
💡 Strategy:
• Consider defensive positions, hedging strategies, or increasing cash reserves.
• Avoid high-risk assets—stocks with weak fundamentals often fall the hardest.
• If you’re a trader, look for short-selling opportunities or inverse ETFs.
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⚠️ DOWNTURN #5: Down -50% — The Market Crash Crisis
A 50% market decline is rare but catastrophic, often fueled by deep economic crises.
Historical Examples:
• 2008 Financial Crisis: Banks collapsed, and global markets fell over 50%.
• Dot-Com Bubble (2000): Tech stocks crashed after unsustainable hype.
• Oil Crisis (1973-74): Economic stagnation and inflation led to severe losses.
✅ Key Characteristics:
• Panic selling dominates the market.
• Fear-driven liquidation leads to extreme undervaluation.
• Long-term recovery often follows—but timing is uncertain.
💡 Strategy:
• If you have cash reserves, these moments present once-in-a-decade buying opportunities (but patience is needed).
• Dollar-cost averaging (DCA) can be effective for long-term investors.
• Traders should expect extreme volatility—both to the downside and in sharp relief rallies.
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🌧️ DOWNTURN #6: Prolonged Downside — The Economic Depression
Unlike a crash, a depression is a long-term, sustained downturn that deeply affects the economy.
✅ Key Characteristics:
• Prolonged recession, lasting years rather than months.
• Unemployment soars, economic activity collapses.
• Investor confidence remains low for an extended period.
Historical Example: The Great Depression (1930s)
• U.S. unemployment hit 25%.
• Stock markets stayed depressed for a decade.
• Industrial production and wages plummeted.
💡 Strategy:
• Preservation of capital is key—cash, gold, and defensive assets become crucial.
• Income-producing investments (dividend stocks, bonds) provide stability.
• Patience is essential; full recovery can take years.
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🧭 Conclusion: Navigating Market Downturns Like a Pro
Downturns are an inevitable part of investing and trading. While they can be unsettling, being informed and prepared is the key to staying ahead.
✅ Key Takeaways:
• Minor dips (-2% to -5%) are normal and often present opportunities.
• Corrections (-10%) require caution, but markets usually recover.
• Bear markets (-20%) signal broader economic concerns—risk management is crucial.
• Crashes (-50%) are rare but can create massive buying opportunities for long-term investors.
• Depressions are the most severe and require a long-term, defensive approach.
No matter the downturn, the key is to stay calm, adjust your strategy, and use market cycles to your advantage.
With the right approach, you won’t just survive market downturns—you’ll thrive in the long run. 🚀
S&P 500 Index Hits 2025 Low Following Trump's TariffS&P 500 Index Hits 2025 Low Following Trump's Tariff Announcement
As shown on the S&P 500 Index (US SPX 500 mini on FXOpen) chart, the benchmark US stock index dropped below 5,450 points for the first time in 2025. This decline reflects the US stock market’s reaction to the tariffs imposed by the White House on international trade.
According to Reuters:
→ President Donald Trump announced a 10% tariff on most goods imported into the United States, with Asian countries being hit the hardest.
→ This move escalates the global trade war. "The consequences will be devastating for millions of people worldwide," said European Commission President Ursula von der Leyen, adding that the 27-member EU bloc is preparing to retaliate if negotiations with Washington fail.
Financial Markets’ Reaction to Trump’s Tariffs
→ Stock markets in Beijing and Tokyo fell to multi-month lows.
→ Gold hit a new all-time high, surpassing $3,160.
→ The US dollar weakened against other major currencies.
The S&P 500 Index (US SPX 500 mini on FXOpen) is now trading at levels last seen in September 2024, before Trump's election victory.
Investor sentiment appears to have turned bearish, with growing concerns over the impact of Trump's tariffs, as fears mount that they could slow down the US economy and fuel inflation.
Technical Analysis of the S&P 500 Index (US SPX 500 mini on FXOpen)
The bearish momentum seen yesterday signals a continued correction, which we first identified in our 17 March analysis.
At that time, we mapped out a rising channel (blue) that began in 2024, suggesting that selling pressure might ease near its lower boundary. However, Trump's policy decision has reinforced bearish confidence, and now the price may continue fluctuating within the two downward-sloping red lines. This suggests that the long-term blue growth channel is losing its relevance.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Hellena | SPX500 (4H): LONG to resistance area of 5788.8.Dear colleagues, I am still counting on an upward movement. It seems that the sellers have not lost their strength yet and I see that an update of the low in the area of 5445 is possible. Then I expect a resumption of the upward movement with a target to reach the 5788.8 area.
As usual there are 2 possible entry options:
1) Market entry
2) Entry by pending limit orders if the price starts a small downward movement.
Manage your capital correctly and competently! Only enter trades based on reliable patterns!
SPX developing a wedge similar to 2022As I write this futures are sharply down to 5440 and ViX is at 40. I expect to see a short technical bounce to about 5550, being at major trendline. The wedge formation is similar to 2022. A breakout from Wedge would be sharp either way. If it holds at this level for a couple of weeks then I expect to see a bounce to 5775.I had said earlier in my vix analysis we are in 2022 mode.
Market could see a relief rally only to realise that there are still many unknowns.
The impact on labour market due to immigration policies, retaliation of other countries and negotiation results thereof, impact on consumer sentiments and extent of inflations due to tariff. Weakening of US dollar will only add to inflation pressure. Trump has only accelerated BRICS agenda of moving away from USD
Citadel,Millennium and many other hedge fund are having liquidity problems and FED is been asked to setup a bailout fund for these crooks. They are the highest leveraged entities. A weaker market will precipitate another financial crisis. So far the financial sector hasn't been devalued liketh tech and semi's. I think their turn will come once the market have finished dealing with tech valuations. Once market gets this, it will see a sharp selloff, which is better than slow grind down over months as far as I am concerned
When trump says, he doesn't care about the stock market, I think he knows it is overvalued, just like Warren Buffet did last year and sold off most his positions and now sitting on largest cash in history, waiting for it to come to his level of expectation which to to my mind cant be just 10%
bat rather like 30% write off in the en, to entice savvy investors like Buffet and Michael Burry to re-enter and clean out the garbage investors like the hedge funds
SPX has reached the top.SPX has reached the top.
Based on a 3m period, SPX looks like it reached the top.
Previous 3m candle closed below previous month. Signs of top, it can be fake-out but its near the RANGE (Red line)
The G2S is in the bear market. The black indicator line is below the G2S (Blue Line)
The 3m BREAKOUT indicator makes a lower high while price makes a higher high.
1 Year range looks very bullish, usually when you have a closed above the RANGE (Red line) its bullish, the price can go ballistic to the upside. This can be a fake-out too, we might have a big red candle at the end of the year.
Time will tell, i don't trade SPX but if i will buy this stock, i will buy it at the RANGE (Green Line) or when its too close to it.
SPX: You Need To PrepareLast time I posted on SPX I said that I was sounding the Alarm
I'm going to reiterate that you need to prepare
No fear mongering, no fancy Elliott Wave Charts and no History Lessons in economics
Lets just ask ourselves some really simple questions:
If you lost your job today, how easy do you think it would be to find replacement employment that could maintain your current lifestyle?
How many months of emergency savings do you have?
What is your level of credit card/ debt in general and are you paying more than the minimum payment?
Do you want to own a home? How hopeful are you about your chances to own in the near future?
Are you saving for retirement? No really are you saving..be honest. If not, why?
How happy, hopeful, worried, sad are you? Be honest
And finally:
Do you believe everything will be ok financially for you 10/20 years from now? Be honest
Now ask yourself: What do I have to do so that I can move from believing/not believing to KNOWING that things will be ok?
S&P 500 on Edge: How Trump’s Tariffs Are Reshaping Market TrendsMarket Overview: The Shockwave of New Tariffs
The S&P 500 is facing heightened volatility following former President Donald Trump’s newly proposed tariffs. Investors are grappling with concerns over economic growth, inflation, and potential trade retaliation. While markets initially showed resilience, the broader trend suggests growing unease as analysts dissect the long-term impact.
Since the announcement, the S&P 500 has shown choppy movements, attempting to hold key support levels. However, increased selling pressure could signal deeper corrections ahead.
Breaking Down the Tariffs: What’s at Stake?
Trump’s tariff plan includes:
• A 10% baseline tariff on all imported goods
• A 25% tariff on automobile imports
• Additional country-specific trade restrictions
These policies aim to boost domestic manufacturing but risk disrupting global supply chains, impacting corporate profit margins, and inflating consumer prices. The biggest concern? Potential retaliatory tariffs from trade partners, which could escalate tensions and further pressure equities.
Technical Analysis: S&P 500 at a Crossroads
Key Support and Resistance Levels
• Support: 5,000 (psychological level), 4,850 (50-day moving average)
• Resistance: 5,200 (recent highs), 5,300 (all-time high zone)
The S&P 500 recently tested its 50-day moving average, a critical indicator of short-term market sentiment. If selling pressure intensifies, a break below this level could lead to a deeper pullback toward 4,800.
Momentum Indicators
• RSI (Relative Strength Index): Hovering near 45, indicating neutral to slightly bearish momentum
• MACD (Moving Average Convergence Divergence): Shows a bearish crossover, suggesting potential downside pressure
• Volume Trends: Increasing on red days, signaling distribution rather than accumulation
The combination of technical weakness and fundamental uncertainty points to a cautious trading environment in the coming weeks.
Sector Impact: Winners & Losers
Winners
✔ Domestic Industrials & Manufacturing – Companies benefiting from protectionist policies may see increased demand.
✔ Defense & Aerospace – Historically resilient during geopolitical and economic uncertainty.
✔ Commodity Producers – Rising inflation could lift materials and energy stocks.
Losers
❌ Technology & Semiconductors – Supply chain disruptions and higher import costs could weigh on margins.
❌ Automotive Industry – Higher tariffs on imported vehicles could hurt both manufacturers and consumers.
❌ Retail & Consumer Goods – Increased costs may be passed on to consumers, dampening demand.
Investor Playbook: Navigating the Uncertainty
Short-Term Strategies
• Hedge with Volatility Plays: The VIX has been ticking higher, making it an attractive hedge against market swings.
• Watch Key Support Levels: A break below 4,850 on the S&P 500 could signal further downside, while a bounce from current levels may present a short-term buying opportunity.
• Sector Rotation: Shift focus to industries that historically perform well during protectionist policies, such as domestic manufacturing and commodities.
Long-Term Outlook
While the market is reacting negatively to tariff announcements, historical data suggests that initial sell-offs can eventually lead to stabilization as businesses adjust. However, if tariffs escalate into a full-scale trade war, expect prolonged market turbulence similar to the 2018 tariff battle with China.
Final Thoughts
The S&P 500 is at a critical juncture. If trade tensions escalate, expect increased volatility and further downside pressure. However, if negotiations ease concerns, markets could stabilize and resume their upward trajectory.
For now, traders should proceed with caution, keep an eye on technical indicators, and be prepared for potential market shocks. The next few weeks will be crucial in determining whether this is just a short-term correction or the beginning of a broader market shift.
⚠️ Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Stock prices are subject to market risks, and past performance is not indicative of future results. Always conduct your own research or consult a financial advisor before making investment decisions.