S&P 500 INDEX MODEL TRADING PLANS for MON. 11/04
After testing low 4100’s, the index has rebounded this week in the midst of an influx of macro economic news which culminated into the FOMC last week. Last week’s flurry of macro economic releases added to the upside momentum in an apparently “relief rally”. This week to test if it is sustainable or not.
We have been publishing since early October the following: “Our models indicate 4310 as the level to close above for the current bearish bias to be negated”. Subsequently, our models adapted a bearish bias and will continue to sport that bias while the index is below 4310. As we published on Fri., 11/03: “On Thu. 11/02, the index closed above this level and our models have now negated the bearish bias and adapted a neutral bias, waiting to see the close today and on Monday, 11/06”. Our models indicate 4385 as the immediate resistance, followed by 4415 as the main resistance for bulls to overcome.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 4382, 4371, 4358, 4338, or 4324 with an 8-point trailing stop, and going short on a break below 4389, 4368, 4354, 4343, or 4334 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 4378, and explicit short exits on a break above 4392 or 4345. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 10:31am 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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