S&P 500: New support confirmed amid fragile global market

SP:SPX   S&P 500 Index
While walking risk-wise on razor thin ice the "S&P 500" confirmed on Monday, July 2 that the low it made on Thursday, June 28 is the new support. Therefore the market is soon going to test where the price resistance above is. I think this price area might be between 2755-2760 (or higher). I wanted to share this idea before today's open, but ran out of time. At least there is now far more evidence after the strong upmove on July 2 that the market really wants to go higher.

Hopefully there will be a last pullback before the long target gets reached. Due to the fact that the bounce train has started to leave the station - in order to get filled - I recommend the long entry far above Monday's low (which was at 2698.95).

Long entry: 2712.5
Long target: 2755.0
Stop loss: 2696.5

Risk/Reward Ratio: 2.66
Trade active: Long order filled at 2712 today (recent intra-day low three hours before the close was 2711.16).

This trade remains very risky because of July 4 being tomorrow, therefore I can only recommend a small position size you are willing to lose.

Worst case would be a sharp drop in global markets happening while US markets are closed for trading in observance of Independence Day. In that worst case the US market would then drop big time like a stone on July 5 with a huge gap down.

FYI: Which markets are closed on July 4th?
Trade closed: target reached: Long target 2755 was not only hit, but also exceeded on July 6. The S&P 500 rallied on Friday up to 2761.76 with four hours left until the end of the trading session.

I closed the long position from 2712 at 2759.

Hope all is well! I am very grateful to the knowledge you share here. I recently came across Elliott wave. Do you think we are at the starting of a 5th wave or at the end of 5th and beginning of a 6th wave going down.

Best wishes with all your trading!
By Wednesday we are going to have been missed all the money and in a dangerous zone. We going to 2840. My strategy is when spx hesitates tmrw at the 2800 level and sheds a few points but in with half and wait for Wednesday around mid day to see if we get another pullback then buy in with rest and ride till 2832. Why? Tariff stuff over for 2 more weeks and...
So where is spx headed now
ChartArt Ctho223
@Ctho223, In hindsight the long position should have been kept open over the weekend.

I'm waiting for a dip. To me it looks too over-extended here to go long above 2770 with this trend line resistance right above. On Wednesday it should be easier to see where this is going.
Best of the Best!
Nice post. My system shows resistance at 2784.44 so I think you are on the right track :-)
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