Key Support Held

In our plans published yesterday, Thursday 01/19, we wrote: “Our models are adapting a cautiously bearish bias while the index is below 3950”. As of the writing of this trading plan, the index tested the support around the 3900 level and has rebounded from there and is currently testing the 3950 level.

If the index closes above 3950 level, our models will switch from the cautiously bearish bias to a neutral bias. A daily close above 3985 will see our models flip to bullish bias.

Positional Trading Models: Our positional trading models closed yesterday’s regular session with an open long entered at 3905.61 with a trailing stop of 35 points. Models indicate exiting the long with a take-profit target of 3955 or on a tick below 3945, effective from 2:35pm EST.

By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops – if any – being active in the overnight session.

Intraday/Aggressive Models: Our aggressive, intraday models indicate the trading plans below for today.

Trading Plans for FRI. 01/20:

Aggressive Intraday Models: For today, our aggressive intraday models indicate the same trading plans as yesterday – going long on a break above 4002, 3963, 3905, or 3882 with a 9-point trailing stop, and going short on a break below 3947, 3900, or 3876 with a 9-point trailing stop. 

Models indicate long exits on a break below 3996, and short exits on a break above 3953 for today. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 02:35 pm ET or later.

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.

(WHAT IS THE CREDIBILITY and the PERFORMANCE OF OUR MODEL TRADING PLANS over the LAST WEEK, LAST MONTH, LAST YEAR? Please click here to see for yourself how our pre-published model trades have performed so far! Seeing is believing!) 

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.

#spx #spx500 #spy #sp500 #esmini #indextrading #daytrading #models #tradingplans #outlook #economy #bear #yields #fomc #fed #newhigh #stocks #futures #inflation #powell #interestrates #rates #nfp #earnings #earningsseason #midterms #elections #cpi #fedpivot #shortsqueeze