S&P 500 INDEX MODEL TRADING PLANS for FRI. 2/16/24
This morning’s PPI reinforces the latest “stickier inflation” story. As per our trading plans published on Friday, 2/9/24: “4975 is the immediate support level, and 5027 is the next main resistance level to watch for”. On that day, The index closed at 5026.62 – just under 0.4 points away from that level. After closing below our 4975 level on Monday’s sell off, the index is back above the 5000 mile stone level. The index is re-testing the 5027 level this morning – remains to be seen if it can break/re-test the all time high today, and if it closes above 5027 today and on Monday.
S&P 500 above the 5000’s is a new, record territory that the bulls have to navigate in the midst of the rumbling concerns about sticky inflation, no-rate-cuts-anytime-soon, and valuations. Yesterday’s CPI numbers make these rumblings louder, and the bulls might be well served to take a note. Nevertheless, as long as the index is above 4975 on a daily close basis, shorts should be patient and not jump the gun.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 5043, 5032, 5005, or 4986 with an 9-point trailing stop, and going short on a break below 5040, 5029, 5023, 5015, or 4994 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 5002, 4999, or 4983, and explicit short exits on a break above 5026, 5017, 5002, or 4996. Models also indicate instituting a break-even stop (which would trigger on a break above/below the entry level) once a position reached a 3-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) For the execution of our models trading plans, a “break above/below” is deemed to have occurred when the index closes above/below (if you are trading by bar close) a specified trading level.
(iv) For the trades to trigger, the breaks should occur during the regular session hours starting at 9:30am ET. By design, they carry only one open position at any given time.
(v) 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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