Friday, September 2, 2011

SPX - where to from here?

Regardless of what one's long-term view on SPX is, this 1170 - 75 level is holding so far, and is very important to the upswing structure. I think that should 1170 - 75 hold (on closing basis) we may make a new high for this short-term upswing structure somewhere around 1250. After that all bets on the long side are off, and perhaps we trade in 1200 - 1250 range really choppy until the Q3 earnings roll out.
So my action here, based on the above observation, is to close 1220 and 1230 shorts and to start initiating longs.
Why am I abandoning 1150 - 60 short target? Reward-to-risk ratio is just not so great to hold on to that trade here.

Good luck traders!


  1. Do you mean: should SPX 1170 hold next Tuesday, then close shorts and go long?

  2. Yes, that is my plan. I am also thinking that 1150 - 60 is another good area for longs, should 1170 fail. I will post further details in my weekly thoughts tomorrow. Thank you for reading!!