SPX - Long exited, waiting for next opportunity
We reached the MTFA resistance level and the indicator told us the market was overextended. As I mentioned in my previous SPX post: use the tighter stop if we see overextension. Stop was hit at 2749, and now looking for a possible re-entry. All higher timeframes are still in bullish territory, but the indicators are showing some signs of weakness. Both CMF and the RSX show bearish divergence, but price is rejected from the bottom of the kumo, so no need to turn bearish yet. Wait and see how this correction plays out.
The daily timeframe is on a bullish setup but overextended too, so we might be in for a correction on the daily timeframe.
The plan: look for either a bullish setup on the 30 min to trade the continuation of the bullish move, or a bearish setup on the 1HR to trade the correction of the daily overextension. Every candle gives you new information: use it, and don;t get married to a direction
If you find this useful, like and subscribe to get notified of updates and new ideas
If you want to tryout the indicators and strategy, follow and pm me and I’ll get you set up.
Stay calm, and happy trading!
The daily timeframe is on a bullish setup but overextended too, so we might be in for a correction on the daily timeframe.
The plan: look for either a bullish setup on the 30 min to trade the continuation of the bullish move, or a bearish setup on the 1HR to trade the correction of the daily overextension. Every candle gives you new information: use it, and don;t get married to a direction
If you find this useful, like and subscribe to get notified of updates and new ideas
If you want to tryout the indicators and strategy, follow and pm me and I’ll get you set up.
Stay calm, and happy trading!
30min chart
1Hr chart showing the exit of the last trade