Short SPY

31 thg 5, 2019

Monthly bearish engulfing candle, engulfing prior 2 candles. Looks like a double top at ATH resistance, fueled by the trade war narrative suggesting further pain ahead and volatility expansion. Not very fond of indicators, nevertheless a commonly used tool by some technicians is the 200 moving average. On the daily we had a decisive close bellow it. From a trading stand point would like to get short at prior candle low around the 284 level if a retracement occurs for a swing trade. Stop at engulfing high and looking for a 2 RR trade with a close at 263 support level, if global tensions continue and price action keeps showing bearish signs might take half off at the level and let other part of the position run further, trailing stops accordingly.