A poor call on this index yesterday led to the loss of some 12 -15 points as the buy point at 2627 was broken and the stop at
2614 triggered. It wiped out the 6 point win earlier but at least the 60 point win on the short on Moday and the next 60
points or so from the long on Tuesday means the point tally for the week is still positive, if a little depleted.
Yesterday's price action has driven the S&P to a new closing low, taking it back to fill the little gap that shows on this
chart at 2584. A 10% move from the top = 2585, the low yesterday was 2580. So long as this low holds out today on any
retest this corrrection remains a standard deviation - but the low at 2580 must stick now for the medium term trend to stay
positive from here - any fall below 2580 by more than 4 points will tip this index back into bear territory and force it lower
to 2543 (first short) and then if this level breaks to 2488 (second short).
On the upside, whilst stuck within the range and below 2619 it's not giving a strong enough signal to trigger a trade...it has
to break above here and hold there to trigger a rally to 2668 which should be worth following with stops just under 2600.
Alternatively can be bought at 2607 current levels with stops below 2600 and added to once 2619 is broken above.
This is higher risk but also higher reward. Others will prefer to wait for next signal to trigger before entering positions.
SPX Shorter Term Chart