FX:SPX500 S&P 500 index of US listed shares
I'm not implying the spx rally is over or a top is in. But looking at the channel the spx has been trading in since 2011 lows, there is not much room to the upside at the moment and believe by observation there is more room for the spx to pullback. My plan is to sell the hwb from highs to lows as long as it acts as resistance with a tight stop. Last week was the first time the 61.8 short held as resistance. For the whole month of February there was no resistance, last week it showed up. If it continues, looking to sell resistance. If the market rallies back up to highs which it could, I would look to sell into strength with my stop above the top channel. IMO it's a good rr trade and better than the long at this moment. I would look to take off the trade ar 2020-2012 could even see the spx trade back to 1968.
Next week is futures rollover. My thought is who wants to put on a new swing trade on the old contract next week? Plus traders who were long and did not get out today might look at a retrace to take profit, which could cause more selling. By Thursday the new contract should be in full swing, so could see a Thursday Friday low??? Or further into the month.