The bull standing its ground…
As stated in this morning’s real time commentary – posted around 11am EDT – the 2710 level was tested again (with the day’s low registered at 2707.38) and it again proved as a strong support and the index never broke below it throughout the session since posting that message (if this reads like a deja vu to you, it it because it IS – yesterday’s market action and our yesterday’s real time alert and how accurate it panned out was exactly the same)!
Model Biases/Outlook:
Both short term and medium term models indicate strong resistance by the 2735-2745 band and the bulls might have to struggle to clear that band of resistance. If that is cleared, then 2800 will come into the sight of the bulls; if not, expect choppy, range-bound trading to continue until 2735-45 is taken out or until the 2715-2705 support band is broken down. The index today tested both these bands (identified in our outlook last night itself), which validates the continuing streak of accuracy of our models (remember that it won’t always work this well and there will be way-off days as well – hence, remind yourself not to bet on any “all-in” trades based on these or any other models/forecasts).
Medium-to-long term investors:
Currently flat, with no positions being held. Medium term models currently
indicate no short bias until all the way
below 2680. The models indicate fresh buying only above
2640 on a daily close or on a breach of 2645 with tight stops, and selling short only below
2680. Stay flat between these levels.
(carried from the forecast for Thursday, 5/24/18)Aggressive, short term, medium-frequency, or professional traders:
Models are currently long from 2720, with a take-profit target at 2733 and a stop-loss at 2720 and are in profits at the close of the session (closed at 2727.76). Those who are currently long better be following the models and keep a sell-stop at or below 2620 (depending on your trading style and risk appetite), and stay flat within the 2620-2610 band, and may sell short at or below 2605 with very tight stops and targets (around 5 points).
IMPORTANT NOTICES & DISCLAIMERS – READ CAREFULLY:
(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.
(ii) Do NOT make your financial investment or trading decisions based on this article; anyone doing so shall do so solely at their own risk. The author will NOT be responsible for any losses or loss of potential gains arising from any investments/trades made based on the opinions, forecasts or other information contained in this article.
(iii) Risk Warning: Investing, trading in S&P 500 Index – spot, futures, or options or in any other synthetic form – or its component stocks carries inherent risk of loss. Trading in leveraged instruments such as futures carries much higher risk of significant losses and you may lose more than you invested in them. Carefully consider your individual financial situation and investment objectives before investing in any financial instruments. If you are not a professional trader, consult a professional investment advisor before making your investment decisions.
(iv) Past performance: This article may contain references to past performance of hypothetical trades or past forecasts, which should NOT be taken as any representation or promise or guarantee of potential future profits. Past performance is not indicative of future performance.
(v) The author makes no representations whatsoever and assumes no responsibility as to the suitability, accuracy, completeness or validity of the information or the forecasts provided.
(vi) All opinions expressed herein are subject to change at any time, without any notice to anyone.
