Analyse of The S&P 500 Hello Folks.
The S&p 500 just breached the high at4227.25 of the candle of 19 May and rejected the Monthly C.E of the wick of the august candle, if the price retarce to the daily FVG showen here and find support at it i think that the high 4243.25 could be taken. if the price didn't respect the daily FVG and passes trough it i will treat it as a IFVG and i will look to take the Weekly SSL at the low 4114.00.
im open to all new idea and criticisms in the comment section
Es1
S&P500 Near the top on two patterns. Pull back possible.S&P500 is testing Resistance (1) on the Channel Up inside the larger Megaphone pattern. Currently it is at the top on two separate patterns.
The MA50 (1d) is supporting the Channel Up and the MA200 (1d) the Megaphone.
Trading Plan:
1. Sell on the current market price.
2. Buy on Support (1).
3. Sell under Support (2).
Targets:
1. 4175 (Support 1).
2. 4300 (top of Channel Up).
3. 4000 (bottom of Megaphone and near MA200 1d).
Tips:
1. The RSI (4h) Highs (70.00) and Lows (30.00) match perfectly the Tops and Bottoms of the Channel Up. Use this to your advantage. RSI values of 70.00 are to be sold while values of 30.00 to be bought, as long as the Channel Up holds.
Please like, follow and comment!!
Notes:
Past trading plan:
Debt Ceiling Deal Euphoria - RekindledS&P 500 INDEX MODEL TRADING PLANS for THU. 06/01
We started this trading week yesterday with these words: "Now that the Debt Ceiling drama is apparently over ("apparently" is the keyword there), can the markets continue to be intoxicated on the nVidia-A.I. exuberance and continue the bullish leg or get back to the macro-economic fundamentals of inflation, valuation, china-slowdown (bad news good news here, with hopes of China stimulus?) etc.? A couple of sessions into this shortened week shall reveal. Till then, caution might be warranted on the part of the bulls".
We started last trading week with our trading plans on Monday titled: "Debt Ceiling Deadline Likely to Whipsaw the Markets", and these words: "Expect the approaching debt ceiling deadline to attract both bulls and bears to heightened speculation, resulting in some whipsaw movements until the deadline passes and the dust settles".
The dust might be settling this week or early next week. The direction in which it settles would determine the next directional bias in the markets. Currently, our directional models indicate no bias and are in an indeterminate state.
Positional Trading Models: Following the trading plans published earlier in the week, our positional models went short on the close yesterday, at 4179.84, with a 52-point trailing stop. With the session's low recorded at 4171.64, the current trigger of the stop is at 4231.84. If this is hit, the models indicate going short again on a break below 4228 with a hard stop at 4242.
By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops - if any - being active in the overnight session.
Aggressive/Intraday Models: Our aggressive, intraday models indicate the trading plans below for today.
Aggressive, Intraday Trading Plans for THU. 06/01:
For today, our aggressive intraday models indicate going long on a break above 4222, 4198, 4187, or 4156 with a 9-point trailing stop, and going short on a break below 4125, 4194, 4184, or 4150 with a 9-point trailing stop.
Models indicate explicit exits for the day. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 01:46pm ET or later.
By definition the intraday models do not hold any positions overnight - the models exit any open position at the close of the last bar (3:59pm bar or 4:00pm bar, depending on your platform's bar timing convention).
To avoid getting whipsawed, use at least a 5-minute closing or a higher time frame (a 1-minute if you know what you are doing) - depending on your risk tolerance and trading style - to determine the signals.
(WHAT IS THE CREDIBILITY and the PERFORMANCE OF OUR MODEL TRADING PLANS over the LAST WEEK, LAST MONTH, LAST YEAR? Please check for yourself how our pre-published model trades have performed so far! Seeing is believing!)
NOTES - HOW TO INTERPRET/USE THESE TRADING PLANS:
(i) The trading levels identified are derived from our A.I. Powered Quant Models. Depending on the market conditions, these may or may not correspond to any specific indicator(s).
(ii) These trading plans may be used to trade in any instrument that tracks the S&P 500 Index (e.g., ETFs such as SPY, derivatives such as futures and options on futures, and SPX options), triggered by the price levels in the Index. The results of these indicated trades would vary widely depending on the timeframe you use (tick chart, 1 minute, or 5 minute, or 15 minute or 60 minute etc.), the quality of your broker's execution, any slippages, your trading commissions and many other factors.
(iii) These are NOT trading recommendations for any individual(s) and may or may not be suitable to your own financial objectives and risk tolerance - USE these ONLY as educational tools to inform and educate your own trading decisions, at your own risk.
#spx, #spx500, #spy, #sp500, #esmini, #indextrading, #daytrading, #models, #tradingplans, #outlook, #economy, #bear, #yields, #stocks, #futures, #inflation, #recession, #fomc, #fed, #fedspeak, #regionalbanks, #debtceiling, #china
Inching Higher, 1 Jun 2023🖼 Daily Technical Picture 📈
➤ Markets pulled back but in the short-term, it is still zig-zagging upwards. It is inching higher and so is the hurdle required to proof the case for a new Bull market.
➤ For May, the monthly price failed to close above the Feb high just like in prior months. It has however put in a place a higher high. The higher high at 422.58 on the SPY is the new monthly hurdle that needs to be eclipsed. It is both hope and a struggle. The hope is for a new Bull market, the struggle is to get there. Picture a tiring swimmer that is treading water, getting closer to safety but barely keeping afloat.
➤ I hold a small short position.
➤ Conclusion: 🐆 Pricing is setting up for a high conviction short opportunity but I also said that many times in May. It failed to materialise into a trade.
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
ES UpdateWell I flipped my BUD puts on open for decent returns, ES MFI hit oversold yesterday but RSI is hung up in the middle. The question here is do the algos pump on MFI being oversold or do they wait until RSI hits it?
I'm inclined to believe they're gonna pump because the market is stupid, lol.
Debt Ceiling Deal ("Almost Done") Euphoria Dying Down?S&P 500 INDEX MODEL TRADING PLANS for WED. 05/31
We started this trading week yesterday with these words: "Now that the Debt Ceiling drama is apparently over ("apparently" is the keyword there), can the markets continue to be intoxicated on the nVidia-A.I. exuberance and continue the bullish leg or get back to the macro-economic fundamentals of inflation, valuation, china-slowdown (bad news good news here, with hopes of China stimulus?) etc.? A couple of sessions into this shortened week shall reveal. Till then, caution might be warranted on the part of the bulls".
We started last trading week with our trading plans on Monday titled: "Debt Ceiling Deadline Likely to Whipsaw the Markets", and these words: "Expect the approaching debt ceiling deadline to attract both bulls and bears to heightened speculation, resulting in some whipsaw movements until the deadline passes and the dust settles".
The dust might be settling this week or early next week. Which direction in which it settles would determine the next directional bias in the markets. Currently, our directional models indicate no bias and are in an indeterminate state.
Positional Trading Models: For today, our positional models indicate going short on the close if below 4180, with a 52-point trailing stop.
By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops - if any - being active in the overnight session.
Aggressive/Intraday Models: Our aggressive, intraday models indicate the trading plans below for today.
Aggressive, Intraday Trading Plans for WED. 05/31:
For today, our aggressive intraday models indicate going long on a break above 4216, 4206, 4189, or 4156 with a 9-point trailing stop, and going short on a break below 4200, 4184, or 4150 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 4212. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 09:31am ET or later.
By definition the intraday models do not hold any positions overnight - the models exit any open position at the close of the last bar (3:59pm bar or 4:00pm bar, depending on your platform's bar timing convention).
To avoid getting whipsawed, use at least a 5-minute closing or a higher time frame (a 1-minute if you know what you are doing) - depending on your risk tolerance and trading style - to determine the signals.
(WHAT IS THE CREDIBILITY and the PERFORMANCE OF OUR MODEL TRADING PLANS over the LAST WEEK, LAST MONTH, LAST YEAR? Please check for yourself how our pre-published model trades have performed so far! Seeing is believing!)
NOTES - HOW TO INTERPRET/USE THESE TRADING PLANS:
(i) The trading levels identified are derived from our A.I. Powered Quant Models. Depending on the market conditions, these may or may not correspond to any specific indicator(s).
(ii) These trading plans may be used to trade in any instrument that tracks the S&P 500 Index (e.g., ETFs such as SPY, derivatives such as futures and options on futures, and SPX options), triggered by the price levels in the Index. The results of these indicated trades would vary widely depending on the timeframe you use (tick chart, 1 minute, or 5 minute, or 15 minute or 60 minute etc.), the quality of your broker's execution, any slippages, your trading commissions and many other factors.
(iii) These are NOT trading recommendations for any individual(s) and may or may not be suitable to your own financial objectives and risk tolerance - USE these ONLY as educational tools to inform and educate your own trading decisions, at your own risk.
#spx, #spx500, #spy, #sp500, #esmini, #indextrading, #daytrading, #models, #tradingplans, #outlook, #economy, #bear, #yields, #stocks, #futures, #inflation, #recession, #fomc, #fed, #fedspeak, #regionalbanks, #debtceiling, #china
Are you dripping into your 401k yet?Are you dripping into your 401k yet?
Not bad area to start dripping in imo for longer term positioning.
Dovish powell, in reality it was all stated before and thats why we've had the market really for weeks/months softening rate hikes - the real question is when they will actually STOP! Now, we are at key resistance area, I like the next area of resistance 4200-4300. I'd appreciate any pull back for ES & NQ
key tip: The market is forward looking
Trade your own plan
TJ
ES1! Will Move Lower! Short!
Here is our detailed technical review for ES1!.
Time Frame: 1h
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The price is testing a key resistance 4198.00.
Taking into consideration the current market trend & overbought RSI, chances will be high to see a bearish movement to the downside at least to 4170.50 level.
P.S
Overbought describes a period of time where there has been a significant and consistent upward move in price over a period of time without much pullback.
Like and subscribe and comment my ideas if you enjoy them!
S&P500 Rising Wedge's short-term pull-back to the 1D MA50The S&P500 index (SPX) gave us the expected pull-back and buy entry within the Rising Wedge as per our last week analysis (chart below):
The long-term structure is a Channel Up, so plan your trades in case of a Rising Wedge break-out. On the short-term, we expect the price to pull-back to the 1D MA50 (blue trend-line) and the bottom of the Rising Wedge at 4140. As long as the pattern holds, buy and target the top at 4250. If the top of the Wedge breaks, target 4295m just shy off the long-term Resistance of 4327 (August 15 2022 High).
We will sell on the medium-term only if the price breaks below Support Zone 1 and target the 1D MA200 (orange trend-line), above Support Zone 2 and at the bottom of the long-term Channel Up. The 1D RSI Triangle pattern can give an early signal with regards to the direction in case of a break-out.
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"Bearly" Alive, 31 May 2023🖼 Daily Technical Picture 📈
➤ Bulls may have horns instead of FAANGS but it is just an effective weapon. By some measures the Bear market is over and the Bull market phase is in its infancy.
➤ For me, a strong monthly close in May above the February high is that confirmation. Such a close would reverse the downtrend on the monthly chart. A failure to do so will keep the Bears alive...barely.
➤ The only threat to the Bull market story is in the lack of breadth of stocks contributing to the rise of equities. A strong market is usually composed of multiple sectors leading the charge. Here we only have a very select group of mega tech stocks. To breathe new life into the Bearish narrative, the FAANG bubble needs to implode almost immediately along with the AI hype.
➤ I hold a small short position.
➤ Conclusion: 🐆 FAANGS are sharp.
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
S&P 500, 5/31/23For Wednesday, the 4205.50 - 4220.00 region remains pivotal through the balance of the year, above which 4309.25 is attainable within the week.
Overall, a clear weekly settlement Friday above 4220.00 (last week failed to settle above this significant long-term channel top) would indicate longer-term bullish continuation, 4548.00 (rising weekly) then considered 3 - 5 month objective.
Downside Wednesday, breaking/opening below 4205.50 signals 4190.75, while closing below 4205.50 indicates a good weekly high, 4163.50 then expected within several days, 4090.25 within 2 - 3 weeks, possibly yielding 4012.00 by the end of June.
💡 SPX Seasonality: Sell in May and Go Away. Here's Memorial DayMemorial Day (originally known as Decoration Day) is a federal holiday in the United States for honoring and mourning the U.S. military personnel who have died while serving in the United States Armed Forces.
For nowadays, it is observed on the last Monday of May, and this year it is observed on May 29, 2023.
Memorial Day is considered a U.S. stock market holiday, which means the Nasdaq and New York Stock Exchange will be closed Monday, May 29.
What is Sell in May and Go Away?
Sell in May and Go Away refers to a well-known adage in the business and financial world. The phrase refers to an investment strategy for stocks based on the theory that the stock market underperforms in the four-month period between May and October (since June until September). In contrast, the 3-months period since November and until January sees much stronger stock market growth.
For many past years I used many other websites to analyze seasonality of major stocks, indices, Fx pairs and commodities.
Thanks to TradingView community and its awesome @tradeforopp wizard, the script Seasonality has changed the rules .
As it described on Indicator webpage , This Seasonality indicator is meant to provide insight into an asset's average performance over specified periods of time (Daily, Monthly, and Quarterly).
How the Sell in May and Go Away Strategy Works
If investors follow the Sell in May and Go Away strategy, they sell stocks at the End of May (or during the late spring) and have the proceeds held in cash. Then, the investors would invest again in early October (or in the late autumn). That means, the investors would avoid holding stock during the summer months.
History of Sell in May and Go Away
👉 “Sell in May and Go Away” has its origins in England or, more specifically, in London’s financial district. The original phrase was “Sell in May and go away, come back on St. Leger’s Day,” with the latter event referring to a horse race.
👉 Established in 1776, the St. Leger Stakes is one of the most well-known horse races in England, being the last leg of the British Triple Crown and is run at the Doncaster Racecourse in South Yorkshire in September of every year. In its original context, the adage recommended that British investors, aristocrats, and bankers should sell their shares in May, relax and enjoy the summer months while escaping the London heat, and return to the stock market in the autumn after the St. Leger Stakes.
👉 In the U.S., some investors have adopted a similar strategy by refraining from investing during the period between Memorial Day in May and Labor Day in September.
Relevant Statistics and Considerations
👉 Historical data have generally supported the “Sell in May and Go Away” adage over the many years. The S&P 500 Index has recorded a cumulative three-month average annualized return of more than 10% in the period between November to January, based on the statistics data collected over the past 151 years.
👉 At the other side, S&P500 an average annualized gain is about Zero between May and October (June till September), based on the same statistics data collected over the past 151 years.
👉 Seasonal factors play an important role here, as end-of-year bonuses and the Santa Claus Rally, which refers to the stock market’s tendency to rally over the last few weeks of December into the first few months of the new year. Some theories behind it include increased holiday shopping, optimism and morale fueled by the Thanksgiving Day, winter holidays, or investors settling their books before going on holiday.
February and March are relatively mild in terms of growth. The stock market could lifts in April and May due to the anticipated release of the first-quarter reports (for example, like after recently announced Q1'23 NASDAQ:NVDA report).
👉 In contrast, the summer time tends to be less optimistic, with first-quarter results over and many people spending less time paying attention to stocks as they go on summer vacation. In addition, specifically in election years, there tends to be a weakness of the stock market in September due to the uncertainty of the election results.
The conclusion
👉 It should be noted that returns have often varied in different time periods, and there have been many exceptions.
👉 However the upper chart (SPX Seasonality) clearly illustrates that based on the statistics data collected over the past 151 years, the timeframe since June until September, averagely is the worst time to invest into SP500 Index, while June and September are the worst performer months over the all history of S&P500 since 1870s.
👉 Memorial Day could be considered as a starting point for the strategy, where the negative return of the following business day (or business week in a case of no significant change) after Memorial Day usually predicts the further stock market trends and directions until October (begin of fourth quarter).
ES MFI hit oversoldAmazeballs, ES MFI already hit oversold. MFI is not a good indicator for gap direction though, so we could still see a gap down tomorrow if Europe sells off.
Flipped half my BUD puts and riding just the profits. Sticking with small bets for now, crazy market. Gotta make some money to make this worthwhile though.
Bullish breakout invalidated, divergence between SPX and HSIYesterday, the S&P 500 Index succumbed to market pressures and fell below the critical resistance level of $4,200. By doing so, SPX invalidated a bullish breakout above the narrow range (the zone between $4,050 and $4,200) and retraced very close to the 20-day SMA. This development might suggest exhaustion for the rally, but it is still too early for bears to call a victory. Therefore, to confirm the continuation on the downside, we would like to see the price break below the 20-day SMA and test support near $4,100 (and later near $4,075 and $4,050). On the contrary, to support a bullish case, we would like to see SPX breaking above the narrow range. In regard to technical indicators bolstering a bearish case, we would like to see RSI, Stochastic, and MACD (on the daily time frame) decline along with the price (and simultaneously, DM+ and DM- converging). To support a bullish view, we would seek divergence between DM+ and DM- and reversal (to the upside) in RSI, MACD, and Stochastic.
Besides these developments, we want to bring attention to another subject: the Chinese stock market. A big emphasis was placed on China’s reopening in early 2023 after more than two years of lockdowns. In fact, the main narrative in the media was that this reopening would spur demand and help to divert the economic slowdown in the West. Consequently, we saw a rally in the U.S. equities coinciding with a slight rebound in some economic activity (but with the still relatively mixed big picture). During this time, we saw a high correlation between SPX and Hang Seng persist. However, in the last four weeks, Hang Seng has been increasingly diverging from SPX. That catches our attention as the excuse of recovery in China was used to prop up the Western markets, but now the Chinese stocks are seemingly rolling over (with Hang Seng losing 16% already from its 2023 high). We believe that if the selloff in the Chinese market continues, it will likely weigh on the thesis about recovery and dodging the recession.
Illustration 1.01
Illustration 1.01 shows the daily chart of SPX. The orange line represents the Hang Seng index. A strong positive correlation can be observed between SPX and HSI in the period between November 2022 and April 2023.
Technical analysis gauge
Daily time frame = Neutral
Weekly time frame = Neutral
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
ES1! Massive Short! SELL!
My dear followers ,
Please, find my technical outlook for ES1! below:
The price is coiling around a solid key level - 4214.75
Bias - Bearish
Technical Indicators: Supper Trend gives a precise Bearish signal, while Pivot Point HL predicts price changes and potential reversals in the market.
Goal - 4169.50
My Stop Loss - 4170.50
About Used Indicators:
By the very nature of the supertrend indicator, it offers firm support and resistance levels for traders to enter and exit trades. Additionally, it also provides signals for setting stop losses
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WISH YOU ALL LUCK
Trends maxed to the upside; Some small pullback expectedWith things like NVidia at 175x Forward Earnings, I really see some pullback here on these overheated tech stocks. However, I am waiting to see the upward momentum waver before I decide to go in short on this overly optimistic AI fueled rally.
Trends are now maxed out to the upside, and so I expect some pullback there as well so we can have trends to take us higher.
Trends into today;
Last Macro Trend Signal Spots
30m - 4150 Uptrend (5/24/2023) Lower High
1Hr - 4163 Uptrend (5/25/2023) Lower High
2Hr - 4167 Uptrend (5/26/2023) Higher High
3Hr - 4183 Uptrend (5/26/2023) Higher High
4Hr - 4210 Uptrend (5/26/2023) Higher High
6Hr - 4210 Uptrend (5/26/2023) Higher High
12Hr - 4224 Uptrend (5/28/2023) Higher High
Daily - 4168 Uptrend (4/13/2023) Higher High
Weekly - 4366 Downtrend (2/14/2022) Higher Low
Economic Data;
Mostly just jobs info all week. Couple other minor things but that is definitely the biggest driver all week.
Earnings season is over.
Geopolitical Issue;
I think the biggest threat to this rally is Geopolitical issues rising with China and Taiwan, so keep your eyes on that. NVidia's success is based on their continued coupling with Taiwan Semi. Any threat to Taiwan, and subsequently Taiwan Semi, within the next 2 years or so while other companies gain the hardware to compete with Taiwan Semi, would crush the current AI bubble.
That being said I haven't heard of any major aggression of China against Taiwan lately.
My sentiment into today;
Shorter Term - Neutral
Short Term - Neutral
Medium Term - Neutral
Long Term - Neutral/Bullish
Ultimately I still think the deciding factor is going to be the ESM contract ending here shortly.
Safe trading, and remember your risk management.