The S&P 500 has made 3 consecutive lower highs on the hourly chart as we close the day around 3870. Throughout the day, the S&P 500 tested the orderflow pivot point around 3870 and failed to sustain volume above. With the lower high, we most likely will move much lower over the next few days. As we are still within a secular downtrend on the daily chart (as measured in both EMA, HMA, and ADX-based trend following systems), we fade the bounce here.
A move above 3900 would invalidate this trade.
A move above 3900 would invalidate this trade.
Trade closed manually:
The S&P 500 has bounced multiple times off a zone around 3830, and we can no longer be confident in a move lower.
This could be either a consolidation, or a bottom. Either way, it's time to bail on the trade in a small profit at 3850.
This could be either a consolidation, or a bottom. Either way, it's time to bail on the trade in a small profit at 3850.
