Chart of the day: Bullish S & P 500 Futures offer short-term opportunity

The Treasury proceeds recently ran the show. That catalyst, in place since the delayed path of tightening due to an economic outlook that turned sour, suggests that the global slowdown is catching up with the US

A late shift from risk-on to risk-off at the end of last week caused investors to dump shares in favor of US security. Treasurys. This led to returns plunging under Treasurys at rates that had not been seen since 2007 – prior to the 2008 crash – when the worst depression since the thirties of the last century was brewing

Nowadays, however, the yields are increasing. That makes investors optimistic that the reversal was nothing more than a flashy response, which in turn means that the worst global stock market trading of the year has now become a buying opportunity. are in the green, suggesting that their underlying benchmark will open higher, possibly falling back from a two-day sale.

They can certainly do it. However, the following technical chart indicates that a general sustained sale is more likely.

S & P 500 Index Graph per hour

Since the route planning in December, the SPX fell below the upward line and then moved to the previous trough to eventually form a descending series of peaks and troughs pointing towards the momentum.

While it did all of that, it completed a double top, followed by back-to-back bearish streamers. A downward breakthrough from the current penny, the trading pattern of yesterday, would indicate a continued sale and the extension of a reversal to a short-term downward trend.

To clarify, this is an analysis based on the hour graph. On the daily chart the trend is still higher, in the direction of its peaks and troughs.

Trading Strategies

Conservative traders must wait for the daily chart to form a declining series of peaks and troughs before considering a brief consideration.

Moderate traders can be satisfied with a breakout at the bottom, below the 2,780 level and return to the 2,790 level in a return move that would successfully retest the pennant with at least one long, red candle , which is a green or small candle of both colors.

Aggressive traders can now risk a short position, provided that they understand the risk and the trade accordingly, with a prepared plan that fits their account. Otherwise they are not aggressive & # 39; traders & # 39; but rather gamblers.

Trade sample

Listing: 2,800
Stop-Loss: 2,810, the high of yesterday
Risk: 10 points
Target: 2,760, measures the sharp movement (2 hours) before the pause of the pennant
Reward: 40 points
Risk Reward Ratio: 1: 4

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