S&P 500 INDEX MODEL TRADING PLANS for TUE. 11/28
The retail news this week could be a harbinger of consumer weakness to unfold in the coming days/weeks. Added to that, the recent spike up sparked by the post-FOMC rally appears to have gone too far to be sustainable, and a potential consolidation ahead is likely warranted.
As we have been publishing for the last couple of weeks: “Our models indicate 4385 as the immediate resistance, followed by 4415 as the main resistance for the bulls to overcome”. After an initial test of this level that was swiftly rejected, the index barreled thru that level and breached the 4415 level, and even cleared the 4500 level. 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 4572, 4564, 4553, or 4536 with a 9-point trailing stop, and going short on a break below 4568, 4558, 4552, 4540, or 4533 with a 9-point trailing stop.
Models indicate explicit short exits on a break above 4543. Models also indicate a break-even hard stop once a trade gets into a 9-point profit level. Models indicate taking these signals from 09:41am 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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