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justatrader
Dec 10, 2015 7:27 AM

S&P500 - Prepare for the bears next week Short

S&P 500 index of US listed sharesFXCM

Description

Expecting a final push towards 2070 - 2100 region on SPX500 ahead of a decline towards 1900 eventually. Book partial profits at 2010 - 2000 and move to BE.

On the flipside, as noted, only a 'CLOSE' above 2106 - 2100 will invalidate the short set up. Expect to see spikes to this level if price doesn't start its descent already ahead of the Dec 16th FOMC Meeting.

Trade active

Move to break even. Need a break below 2010/2020 support for a decline lower. Else, there could be a bounce back to 2060

Trade active

Book partial profits and move stops to break even. Expecting a bounce off the current levels.

Trade active

SPX is slowly moving upwards as anticipated. A close above 2024/25 will see a test to 2046/45 region. A close above could be bullish with a test to 2065 where the last support was formed before prices turned lower last week. So 2065 is a great level to watch for a reversal (H1 or H4 doji would be perfect there). If we do find a reversal near 2065, SPX could be looking to a prolonged decline down to 2000 and 1880 eventually.


A close above 2065 however could see a continuation to the upside. So trade management would be essential here.

Good luck!

Comment

Price eventually managed to move higher during the NY session yesterday. 2050 looks like an inevitable retest. Shorts still in play but as noted, at break even. A short term long on the intraday dips should offer some quick profits to 2046/2050 zone. Price above 2050 and below 2070 could mean trouble and should be used to exit all short positions.

Comment

Exit at 2030.. Makings of a Santa rally and a potential inverse H&S pattern shaping up!

Comment

Potential medium term scenario that could be worth keeping an eye on
Comments
IvanLabrie
Perfect man, we'll see more down on Monday.
justatrader
I entered a day later after 16th off the H4 doji and price action has been crazy since then. But there should be a recovery soon back to 2060 region for another go if 2000 holds. looking to 1980/1880 for the eventual target. Ger30/DAX is looking more juicier to the downside.. I'm thinking 8000.. and anyways, EURUSD has a seasonal tendency to rally into Jan/Feb. Let's see how this goes.
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