SPX short, but not just yet, weekly outlook for week 5th August
Even though I trade off K bars intra day I always look at patterns on the daily candlestick charts and the weekly closes to get a feel for the overall energy of the market. Last Thursday's price action intra day was rather vicious and I asked my students to wait for the weekly close for direction.
We are still in a rising chanel. We will probably see price come down to the channel tomorrow and possibly see it overshoot.
Tonight's GLOBEX session will provide further clues as to what to expect tomorrow mrning in both the European and US session.
For now I am looking for a channel break and re-test of the lower trend line to establish shorts. If the channel breaks convincingly we could have a tradeable sell off that will last for several weeks.
Alas it is not in the bag yet. For now this is just my preferred scenario. Even on an intra day basis I am not keen on longs for now, so will only take shorts if they present.
For now around 2960 2965 is the maginot line for the S & P futures. Above will be a tradeable long. If this level is rejected I will look to go short for a re-test and potential break of the Friday low to the trendline which comes in at around 2930ish.
This view may change during the week, if we get a strong rebound inside the channel one will want to go with it. Holiday periods are notorious for unexpected big moves.
We need to be vigilent and wait what the overnight session and the early European session brings tomorrow morning.
Please bear with me, this is my first chart on this system, (I use Ninja trader) and the text editor is not working as I want it to work...!
We are still in a rising chanel. We will probably see price come down to the channel tomorrow and possibly see it overshoot.
Tonight's GLOBEX session will provide further clues as to what to expect tomorrow mrning in both the European and US session.
For now I am looking for a channel break and re-test of the lower trend line to establish shorts. If the channel breaks convincingly we could have a tradeable sell off that will last for several weeks.
Alas it is not in the bag yet. For now this is just my preferred scenario. Even on an intra day basis I am not keen on longs for now, so will only take shorts if they present.
For now around 2960 2965 is the maginot line for the S & P futures. Above will be a tradeable long. If this level is rejected I will look to go short for a re-test and potential break of the Friday low to the trendline which comes in at around 2930ish.
This view may change during the week, if we get a strong rebound inside the channel one will want to go with it. Holiday periods are notorious for unexpected big moves.
We need to be vigilent and wait what the overnight session and the early European session brings tomorrow morning.
Please bear with me, this is my first chart on this system, (I use Ninja trader) and the text editor is not working as I want it to work...!