What’s inside:
- The S&P 500 recovers sharply from lock limit, posting a solid gain for the day, and in the process…
- The index closed above the trend-line extending down off the August 23 peak
- 60-minute chart with markings for short-term traders
In yesterday’s piece, we noted levels on the downside which looked likely to be tested based on futures trading in pre-market after Trump took the White House. But by the time the market had opened, not only had the S&P futures recovered from lock-limit down (-100+ handles) in the middle of the night, they were only down a modest 18 or so by the time the 2:30 GMT cash open rolled around.
This kept the market above the 2115/20 zone of support we had our eyes on. The sharp rally during the day session put the SPX above the trend-line running off the 8/23 peak and now into a thicket of resistance between 2170 & 2180. Beyond there lies a small zone, including the record highs, from 2188 & 2194. The Dow is on its way to posting new record highs today.
Minor support comes in at the 10/24 peak at 2155, with more significant support arriving on a retest of the broken 8/23 trend-line. It is unlikely we have to worry about the 2115/20 zone in the very short-term.
S&P 500: Daily
Created with Tradingview
Dialing in on the 60-minute chart, we have several levels to watch formed over the past couple of months. Short-term traders can utilize these levels within the framework of their style of trading, whether that be to fade off levels or attack breakouts. The preferred method on this end is to look for signs of reversing momentum once certain levels are hit and then take a trade in the other direction, preferably in the direction of the short-term trend.
Levels - Top-side: 2170, 75, 80, 88, 93. Bottom-side: 2155, 50, 47, 30.
60-minute
Created with Tradingview
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---Written by Paul Robinson, Market Analyst
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