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S&P IT direction will be determined tomorrow


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#1 dTraderB

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Posted 07 May 2018 - 03:37 PM

It's smack dab between the 20ma and 50ma, rejected again at that critical 2680/85 zone, but tomorrow (or GLOBEX tonight) 

will determine the IT direction of SPX.  It can go all the way to 2720, first target, or back to the 200ma at 2616, and then to 2580 ....

 

ES_D_m7.jpg



#2 redfoliage2

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Posted 07 May 2018 - 03:45 PM

It looks a gap down is in the cards for tomorrow.............



#3 dTraderB

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Posted 07 May 2018 - 08:28 PM

Good read:

 

Stock Bull & Bear Traps Galore
Posted on May 7, 2018by macromon

The S&P500 could not hold the 50-day today, setting, yet again, a nice bull trap to hang the MoMo crowd.  Seeing a lot more traps, both bull and bear,  these days.  It reflects the dominance of machine trading.   They are above human emotion.  Smug, don’t you think?

We wrote in our recent Week In Review post,

  • S&P500 generated a very rare back-to-back bear trap (broke and closed above 200-day) days on Thursday and Friday.  It has occured only 0.76% of the trading days since 1962

What a market.   Back-to-back bear traps followed by today’s bull trap.  Three traps in a row.......

...............What The Stock Bulls Need Now

It is imperative the S&P bulls:  1)  hold the 20-day moving average at 2,663.04;  2) bust and close above the 50-day at 2,679.56.   Note, the 50-day now has a negative (downward) slope, which, on its own, is bearish,  and 3) take out and close above the recent high at 2,717.49

Relentless Pounding Of The 200-day Moving Average

A lower swing high here, that is below 2.717,  would almost seal the fate the bears will take out the 200-day.  The bears have been relentlessly pounding during the 200-day during this correction.

may7_sp500.png?w=640

Some think what doesn’t kill you makes you stronger.  Personal character, yes.

Technical support levels, we don’t think so.   Eventually,  the front lines will crack, even if it the robots defending them.

More here:

https://macromon.wor...r-traps-galore/



#4 CLK

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Posted 07 May 2018 - 08:41 PM

If it breaks out higher it will be a positional trade to ATH's, outside of the 1 min day trade, there won't be any other trades.


Edited by CLK, 07 May 2018 - 08:41 PM.


#5 dTraderB

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Posted 08 May 2018 - 07:11 AM

An urgent business issue keeps me away from the market for a few hours today. My forecast is Trump will basically finesse the Iran issue,  not as bad as some think it will be for the market, and the market will rise on that news - an UP day

However, there are many other factors that can derail this attempt to break out above 2680/85.....too many to take any market move for granted.

 

2680/85 resistance

2645/50 support  



#6 Harapa

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Posted 08 May 2018 - 08:37 AM

Will Short VXX...at some point in the day



#7 Harapa

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Posted 08 May 2018 - 09:08 AM

Will Short VXX...at some point in the day

Short @ 40.40



#8 Harapa

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Posted 08 May 2018 - 10:26 AM

 

Will Short VXX...at some point in the day

Short @ 40.40

Covered @ 39.85...will short again ...later



#9 Harapa

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Posted 08 May 2018 - 10:49 AM

US market are in a holding mode till 2PM announcement by WH. Predicting reaction to news is a difficult task, however, FOREX is anticipating a sell off in the futures market.



#10 kinga200

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Posted 08 May 2018 - 10:52 AM

Too much resistance...