Possible next "Short" target after first sell off
The S&P is caught between:
If we see, that the S&P has difficulties to move above, close above and stay above the 3,270, we would have another good short opportunity. Nevertheless, there is also a good chance that the S&P will move first towards the 3,270 within the next 1-2 trading sessions and then starts to develop momentum in order to move below the 3,215. In any case I would update the trading idea.
My preferred TP would be 3,160 which is the EMA 90 (daily) and the 38 retracement of the last leg (of the AB=CD pattern).
Good luck to all of you & as always, be patient (I keep telling this to myself, every time :).
- Resistance region (27.12.-08.01.) AND the Pivot Point (daily): ~3,270
- Support region (27.12.-08.01.) AND EMA 50 (daily): ~3,215
If we see, that the S&P has difficulties to move above, close above and stay above the 3,270, we would have another good short opportunity. Nevertheless, there is also a good chance that the S&P will move first towards the 3,270 within the next 1-2 trading sessions and then starts to develop momentum in order to move below the 3,215. In any case I would update the trading idea.
My preferred TP would be 3,160 which is the EMA 90 (daily) and the 38 retracement of the last leg (of the AB=CD pattern).
Good luck to all of you & as always, be patient (I keep telling this to myself, every time :).
Comment:
From here I am going to check, when and IF to short the S&P. I would like to see within the next 4 - 6 hours a top-formation. In addition I am going to observe the US closing. & do not underestimate tomorrows Asian trading session since they started their trading week with an huge drop, they might want to close the gap a little bit more… What I want to say is, do not expect that the S&P is going from here straight to the anticipated TP :) If you suffering FOMO, just buy 5-10% of your usual trade size.
Trade active
Comment:
It seems the markets are in a standby modus: Either ready to buy or to sell depending on the coronavirus news. So, do not forget to set your SL. Whoever is interested on the number regarding the virus check out on the web: 2019-nCoV Global Cases by Johns Hopkins CSSE AND gisanddata.map. You will find a very interesting map which shows you all the OFFICAL numbers by country.
Comment:
This morning I bought the rest of my short position. My tolerance is 1% which means slightly above 3305.
Comment:
It seems that the SL will be hit within the next 1h. Lessons learned from this trade: Never underestimate central banks. Both ECB and PBOC have just flooded the market with liquidity. Even though, the liquidity is not needed by the business in EU (they requested not even 50% from the last liquidity boost) it might be badly needed by the Chinese business. Nevertheless, it is not about if we are right or wrong, it is just about have we seen this coming or not. And simply, I did not. I keep the trade till SL is hit.
Comment:
Still running; lets see.
Trade closed: stop reached