S&P500 Trading Setup
The markets are awaiting the FOMC Statement on Wednesday. From the beginning of the week, we are seeing a quiet mode in which the markets are waiting for a signal to take direction.
by: Colibri Trader
The trading setup from last time (click HERE to see) has been slowly crawling towards the 42.00 barrier and primary target of ours. It did almost reach it today and I am starting to slowly start looking elsewhere for trading opportunities. For the ones of you that are still in it- be aware of the daily candle which shows indecision. We are just above a minor support level, which could turn the price up for the short-medium term. I prefer to take half of my profits at this level and if opportunity presents itself add more to my shorts.
Today, I am looking at the S&P500 trading setup. It is quite rare that I trade this index. You can see HERE the last time I trade the S&P500. It was a long signal that appeared just above the recent bottom. Today’s trading setup is a signal with less certainty than the last S&P trading idea. The reason behind is that I am looking for a breakout of the imminent resistance level. Those trading ideas are less certain and time has proven that they are more prone to mistakes.
The reason why I am more inclined to go long S&P500 today is because the price has formed a few bearish rejections. The daily candle is a dog, but has some bullish connotations that resemble a pin bar. The lower timeframes also are showing me an increase of bullish momentum. I am looking to go long at around 2165. My stop-loss will be placed just under 2149. My primary price target is the level of 2180 and then if price dictates so- 2200.