$SPX for the week 9 Apr 2018

The ranges within the range and the W bottom.

This market is still trendless and there is very little follow through, in either direction, on stocks that I have been watching. This kind of action makes it difficult to take much out of the market. The easier, safer option is still to stay on the sidelines until there is some direction and there are easier pickings.

The wider range is ±2500–2900 and within that some smaller ranges have formed, the closest is the resistance at ±2650 and above that at 2800.

The major support is around 2500 which could be a potential double bottom forming. It also coincides with the 200 day MA. With sell offs like the one that happened in Feb it is highly unlikely that a V bottom is formed and the market bounces immediately and resumes the trend. The higher probability outcome is a second test which is currently happening. An overshoot is possible so a breakdown does not necessarily mean the pattern is over and the market is heading lower. There is a chance of a measured move to 2440 and if that happens the action from there between the bulls and the bears will be telling. Until then, this “chop” makes for difficult trading.

From a trend following point of view I am definitely sitting tight until there is some direction (either way) and then will re-enter the market.

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

I hope you liked reading this article and really appreciate if you would share it on social media and make sure to give it 30 or more claps to support me. Thank you.

P.S. If you want to join our private trading community, click the link below.

Join our trend trading community here

Good trading.

Miguel — TravelingTrendTrader

Email: Miguel@TraderMig.com

Follow or connect with me on:

Twitter: @TraderMig

Facebook: TravelingTrendTrader

LinkedIn: Miguel Teixeira