$SPX for the week 26 Mar 2018

The range within the range and the 200 day in play.

Trading ranges look bullish at the top and bearish at the bottom and do very little. A week or so ago it may have looked like the top would be tested, now the bottom is being tested and looking very bearish. That is all it is, looking bearish and until there is confirmation I am still neutral and on the sidelines.

Once the level at ±2650 gave way, which is the short term range within a bigger range, the next likely level to be tested was the 200 day and possibly the February low to come. A close below the 200 day is not necessarily a reason to get bearish as it could just be an overshoot and snap back into the range. There is no reason to get suckered into a false move.

A bounce from here (even after an overshoot) is also not a reason to get bullish. Until the January highs are broken this market is still rangebound and the best trades are the ones not taken while this market finds direction.

Remember, this is my style from a trend following point of view and there are many other ways to trade this which in my opinion are best taken at lower risk and managed more aggressively.

Support is at the 200 day and the February low at ± 2530.

Resistance is at 2650 and 2800. All just ranges.

Conclusion: The best probability trend trades will be the ones taken once direction is found. Up or down.

Hopefully the above helps you to further your trading. If you have any questions then please feel free to contact me on my FB page or email Miguel@TraderMig.com

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Good trading.

Miguel — TravelingTrendTrader

Email: Miguel@TraderMig.com

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