Adjustment to Pending S&P 500 Trade
Cancelling my sell stop order in the SPX500 (FXCM CFD) following today’s break of Monday’s high. Given the importance of this week from a timing standpoint, I still think the index is vulnerable to a turn lower over the next few days. Key resistance looks to be around 2065/66 as it marks a nice convergence of the 78.6% retracement of the May – February decline and six square root relationships from the year-to-date low. I am moving my stop up a bit to encompass the potential slope symmetry discussed by my colleague Jamie Saettele HERE.
I want to sell the S&P 500 (FXCM CFD) at 2064 with a one day closing stop over 2077. If the trade is triggered, I will be looking to take off half of the position around 2038 and move the stop on the remainder to around cost.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.