Hello Everyone,
Quick Notes: Following yesterday's weak close (bearish engulfing candles on SPX/QQQ), the market traded sharply lower overnight and gapped down on the opening. With the market quite oversold short term, buyers took hold producing an early morning bounce. The next pullback formed a higher low which set the stage for another push higher with the SPX rallying back to it's primary pivot . From there we formed a double top and dropped down to test the early morning higher low support and then rallied again back up to the primary pivot. Something for both short and long traders today. Looking forward, resistance above is 4418 (today's high) and then the breakdown area 4430-35 zone. The VIX closed off it's highs BUT still closed above its upper BB so no signal on this today. IWM closed down for the 6th consecutive day...last time it closed down more days was December 2018. Remain nimble and continue to trade what's in front of you.
As far as trade ideas, many charts are broken or loose not allowing for high quality setups. Recently, the trade shorts have performed quite well and many have continued lower this week. Index hedges served their purpose and one should adjust based upon your plan in conjunction with the highlighted levels above.
Note: Several previous ideas on watchlist remain valid but simply have not yet triggered so continue to re-examine each night. Consider making a fresh top 10-12 setups each night and put on front page along with existing trades. My advice is to keep your total ideas to a manageable number. Lastly, it's best to wait at times for valid setups to form - sometimes less is more.
Please take a moment to look at the trade ideas.
