Mostly sideways chop yesterday, this was expected, we’ve talked about some levels recently on futures that have strong resistance and have for some time now, we found ourselves there and are falling again. will it be different this time?
📈📉 S&P 500 Futures Update
top green zone is our daily resistance, we’ve hit this area over 4 times in the past year. Everytime so far has resulted in moves to the downside. So far its been no different. Were not sitting inside a smaller channel where not much is really happening. The next move will come once we break this area either to the upside back towards our bigger resistance zone or we fall further down.
Here’s a closer view. Were in this channel since Tuesday and with today being the final trading day of the week. Its hard to imagine we’ll get a strong push outside of this zone, this might be something we will have to worry about next week.
Here is one I have an eye on today. NFLX has been strong and it makes some pretty big moves intraday, thats a reason i like to pay attention to it. But I like my level here. If price can get back into my green zone, then I would like to wait for a confirmation when I zoom in on the charts. i want to see a double bottom or an inverse head and shoulders. Something that tells me we have potential to move higher from there. The reason I like this zone is I have defined risk. I can clearly identify where I’ll be wrong and when its time for me to exit the trade and move on.
Let me break this down furhter. Lets zoom in to the 1 minute chart from the 15 minute. This is the zone we identified previously, and the last time the price came into this area, we can see what was starting to happen. This gave us clues for an entry here.
First, price breaks the white trnedline that is was following before hand. Then, it creates a double bottom before it finally reverses and moves higher from here. You can see if you would catch this move anywhere at $337 area and ride it up a couple of bucks.
Got some more names on my list today but will likely stick mostly with my NFLx that I have been watching. Lets finish off the week strong and get ready to get back to it next week
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