S&P 500 INDEX MODEL TRADING PLANS for FRI. 12/08
After a brief dip following the NFP release this morning, the index is again pushing to crack the 4597 level that marks a 20% rise from the markets lows, marking the beginning of a new Bull Market. It remains to be seen if the market can manage to break it and hold it into the daily close, though. A sustainable break above this could lead to swift gains into the new year, while a failure at it can lead to as swift drop. We might get some sense of clarity on this by mid next week.
The retail investor’s bullish sentiment is clocking in at record highs, and all the headline news on the economy and inflation seem pretty good. When everything looks hunky-dory all around, a bit of caution might be warranted. Added to that, the recent spike up sparked by the post-FOMC rally appears to have gone too far to be sustainable (up 8.92% in November alone), and a potential consolidation ahead is likely warranted.
While a consolidation is likely ahead, our models indicate no immediate threat of a bearish leg as long as the index is above 4525 on a daily close basis.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 4599, 4590, or 4540 with a 9-point trailing stop, and going short on a break below 4595, 4582, 4568, 4546, or 4537 with a 9-point trailing stop.
Models indicate explicit short exits on a break above 4550 or 4572. Models also indicate a break-even hard stop once a trade gets into a 5-point profit level. Models indicate taking these signals from 12:01pm EST.
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.
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.
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