"Gap Omen" Wedges Within Wedges Heading Into Kill Zone
Morning Notes: 05/01/19 Trading Environment-Short Term: Current Environment-Neutral/Bearish
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Hi Everyone,
Futures are getting a pop this morning ahead of the Fed decision. There are two very clear bearish wedges and the wave structure remains very mature, making the long side still dangerous. But as we saw yesterday, the bulls continue to buy at the 60 minute 50 dma. Until the bears push through that support line, the bulls will continue to try and extend the rally. As I have also said numerous times, I think it breaks in an all out sell off at some point. Meaning it breaks through and just continues straight down to the next pivot, which would be somewhere between 2913-2890. The /es looks like it is consolidating here, so rushing to jump on the short side may be risky. BUT we are most likely going to see another "Gap Omen" opening and that is something aggressive traders can look to short. The hurdle here is the Fed decision and we could get traders rushing in for the Fed decision ramp, which I do not believe will take place, but could hold whatever gains we see at the open hold until the announcement that they will leave rates unchanged.
I don't really like trading Fed days, as the market is just so nuts and the moves up or down can stop and reverse in a blink of an eye. But any spike, I would look for a sell trigger (lower low) from the high made to add some short positions. Maintaining a 1% stop is always a good idea, but the way the charts look, expecting a sharp drop at any spot up here makes sense. IT WILL MOST LIKELY NOT BE THE TOP! Just a nail biter that will cause some doubt in the bulls camp. I still like the 2860-ish as a short term target and then 2807/2720 if it goes viral. We still have some time before the "Kill Zone" top time frame, so I think if we see the drop, it will find support at some pivot and test or even break the highs we leave behind.
The range SPX range for today is 2955 high and 2949 low. (Gap Numbers) A break of 2955 the spx should try for 2960/2965. A push below 2949 we could see 2939/2927. G
SPX CASH 60 minute technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2955 R2-2960 R3 2965
Support Levels: S1-2949 S2-2939 S3 2927
Trending Pivots: Higher
If you like our post and would like to continue seeing them, please help us grow our network-Thanks You!!
1.) like our post with a thumbs up (each post)
2.) follow us-you will be alerted via email with each post we enter
3.) leave a comment (It could be as simple as Thanks) (each post)
Hi Everyone,
Futures are getting a pop this morning ahead of the Fed decision. There are two very clear bearish wedges and the wave structure remains very mature, making the long side still dangerous. But as we saw yesterday, the bulls continue to buy at the 60 minute 50 dma. Until the bears push through that support line, the bulls will continue to try and extend the rally. As I have also said numerous times, I think it breaks in an all out sell off at some point. Meaning it breaks through and just continues straight down to the next pivot, which would be somewhere between 2913-2890. The /es looks like it is consolidating here, so rushing to jump on the short side may be risky. BUT we are most likely going to see another "Gap Omen" opening and that is something aggressive traders can look to short. The hurdle here is the Fed decision and we could get traders rushing in for the Fed decision ramp, which I do not believe will take place, but could hold whatever gains we see at the open hold until the announcement that they will leave rates unchanged.
I don't really like trading Fed days, as the market is just so nuts and the moves up or down can stop and reverse in a blink of an eye. But any spike, I would look for a sell trigger (lower low) from the high made to add some short positions. Maintaining a 1% stop is always a good idea, but the way the charts look, expecting a sharp drop at any spot up here makes sense. IT WILL MOST LIKELY NOT BE THE TOP! Just a nail biter that will cause some doubt in the bulls camp. I still like the 2860-ish as a short term target and then 2807/2720 if it goes viral. We still have some time before the "Kill Zone" top time frame, so I think if we see the drop, it will find support at some pivot and test or even break the highs we leave behind.
The range SPX range for today is 2955 high and 2949 low. (Gap Numbers) A break of 2955 the spx should try for 2960/2965. A push below 2949 we could see 2939/2927. G
SPX CASH 60 minute technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2955 R2-2960 R3 2965
Support Levels: S1-2949 S2-2939 S3 2927
Trending Pivots: Higher
Comment:
We just updated our free video report that goes over today's reversal and what it means. The link is below. G
