Hi All,
The big drop in the S&P 500 dropped through support offering a good plan for both long and short positioning over the next trading week.
Short Scenario:
- Wait for a bounce to test the trendline. Most likely headlines will subside on the viral outbreak and the market will bounce accordingly.
- Enter short position when price drops below the near term low (wait for two full candles below the near-term low on 4 hr chart)
- Target the longer term support line to close position and evaluate the next trade setup
- Impeachment trial and Q4 earnings could be catalysts to take the market lower
- Stop loss at the trendline or the peak of the bounce.
Long Scenario:
- If the bounce takes price back above the support line, potential to go long with the expectation of a test of the most recent highs ~3,330's.
- Wait for two full white candles to close above the trendline on the 4 hr chart before entering a long trade.
- Stop loss at the trendline or at the near term bottom just below the trendline.
Ciao!
Likes and Follows are always appreciated!
The big drop in the S&P 500 dropped through support offering a good plan for both long and short positioning over the next trading week.
Short Scenario:
- Wait for a bounce to test the trendline. Most likely headlines will subside on the viral outbreak and the market will bounce accordingly.
- Enter short position when price drops below the near term low (wait for two full candles below the near-term low on 4 hr chart)
- Target the longer term support line to close position and evaluate the next trade setup
- Impeachment trial and Q4 earnings could be catalysts to take the market lower
- Stop loss at the trendline or the peak of the bounce.
Long Scenario:
- If the bounce takes price back above the support line, potential to go long with the expectation of a test of the most recent highs ~3,330's.
- Wait for two full white candles to close above the trendline on the 4 hr chart before entering a long trade.
- Stop loss at the trendline or at the near term bottom just below the trendline.
Ciao!
Likes and Follows are always appreciated!