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Looking to Profit From the Next SPX Leg Down

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forexbrokr.
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Direct from the desk of Dane Williams.



Welcome back to another edition of how broken markets are today!

I've made my opinion clear around how irrational this SPX rally has been, but with price still respecting higher time frame support/resistance, there is certainly trading opportunity here.

Take a look at the current daily chart.

SPX Daily:

You can see that while price didn't initially respect the daily shooting star (if something is too good to be true, then it probably is), it has continued to respect our zones.

We've seen quite a good rejection off the higher of our support/resistance zones that have been on our chart since price broke down through them.

Remember, the strength of support/resistance zones are all about how hard price moves away from them. We don't want to see price continuing to tap them and hang around like a bad smell.

With price rejecting the zone and moving straight to our next level in a single candle, this move looks significant.

If price cracks through this zone with continued momentum, it'll offer a good opportunity to zoom into an intraday chart and look for areas of previous short term support turned resistance to short into.

Put yourself into a position to take advantage of big moves and you'll be able to profit from them when they inevitably come.

Best of probabilities to you,

Dane.



FOREX BROKR | Hive Blog Higher time frame market analysis.

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