MarcPMarkets

SPY: BULLISH SUPPORT ZONE GOOD RR

AMEX:SPY   SPDR S&P 500
SPY             . Bearish momentum in the S&P             has brought price into a potential support that if held, prices can retrace back up to the 199.26 area or higher.

On the 30 minute chart it is clear that buying activity that took place around the 15th pushed prices back over 200. Now that we are retesting the prior swing low, buyers may be attracted to such a level for one more attempt at the high. The broader trend has been bullish for sometime which provides a greater chance we push the high but I prefer to take profits at a more conservative and probable target.

In order to trigger a long I need to see some form of candlestick validation at current price levels. This can also come in the form of price structure as well. If price pushes below 197.00 with conviction and closes below this area, then the long idea is cancelled. This is also a good reference point for a stop.

If price validates and retraces, I would be looking for a retest of 199.30 area for an exit and if feeling more aggressive into the low 200's. At current levels, reward to risk is very attractive.

Trading is all about information organization, and following a sound thought framework. Without these elements it is very hard to produce a consistent performance. Check out how one of my trainees is trading after attending my workshops for a short time: http://www.unconventionaltrader.com/?p=368



Marc Principato |Author: Analyze Any Financial Market Like The Pros Using Price Action| http://www.Priceactiontraders.net
I was watching the same level for a long but my smaller time frame looked too choppy. Nice call!
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Thanks. Yeah it was much clearer on the 30 min. By the way nice home work. See you tomorrow in the workshop!
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