Monday morning arm chair quarterback analysis Another Forex trading snack.
Well like that the market does what it wants too! The market is never wrong!
So what went wrong with my take on the SPX and what I was seeing in the markets? Nothing! Nothing at all. News hit about potential positives with the Covid 19 virus... well traders and algo’s that have had 11 years of bullishness in the markets fueled by the Fed and government manipulation along with near zero rates and you get these kind of emotional moves. Thing is emotional fire doesn’t last.
I can see several targeted resistance zones for the SPX on it sudden straight line move. Depending on the markets move and more importantly the NY close of the day. So here is what I’m seeing as Some possibilities....
We gapped higher to day Monday and we could just as easily Have a reversal Tuesday to fill the gap again and continue the grind.
Next we could get a daily close above the 61.8 which technically would be a positive for farther moves higher to maybe the 200 day SMA at 2975-3000
We could get a farther move higher to the 124 or the 1.618 Fib extensions from recent highs to lows. That zone is around 3050-3075 ish area.
Next we could get to the Fib re trace of the 78% at 3130-3150 from the measured move of the all time high to the recent virus low.
So what one has the highest probability of the greatest resistance to current emotions in this move?
Side note the AUDUSD which had tracked the SPX really well of late is under preforming.
Full disclosure here I tried to short AUDUSD But was caught on the wrong side of market emotions.
Don’t get me wrong! I favor shorting SPX because emotional straight line moves favor a reversal to a higher degree then continuing on a higher On a straight line move. But that’s my opinion.
Offer your ideas, views, comments, or criticism, all are welcome here.
If you don’t make dust in the markets then you will certainly eat dust.
All the best in your trades.
As usual this isn’t trading advice, but intended fir educational uses or exchanging trading ideas with other free thinkers. Trade at your own risk.
