I see some downside on the S&P500, I am typically a contrarian trader by nature, We have had a significant bearish engulfing candle pattern setup last week, The MACD is presenting as "true MACD divergence" We had the push down but I'm seeing this recent retracement as a nice opportunity to get in at the $2840 level which lines up closely with a Weekly pivot and a 78.6% Fib. Price Action (which is my passion and truth above all indicators and funda-mentals) has been playing around a resistance level. This may even be a nice little 2.5/1 Risk Reward, but I'll look to start taking profits near the 55EMA and the lower Bollinger Band. RSI while is a nice add on, not the holy grail, is in the "northern" region, worth a mention I guess. Ok 1% risked 2:1RR - Happy Trading!
Trade closed: stop reached:
Wow....who is buying into this economy! Oh right, when you have saving rates at all times lows, people are in search of a return...no matter how risky it is. Or maybe I'm sad my stop got hit on a massive Bearish engulfing candle on a daily...that's probably it. -Somewhat Happy Trading;)
I moderate a small community 4 traders, analyzing weekly charts, and discussing trade setups. Focusing on psychology.