Direct from the desk of Dane Williams.
We brought up the idea that yesterday's price action may have been the opportunity to short SPX that we've been waiting for.
As long as price was respecting higher time frame resistance, we look to play from the short side and that's exactly what we had here.
Click the link in the first paragraph to read the setup in more detail, or just the quick summary quoted from that blog below.
You can see on the hourly chart that price held higher time frame resistance when it was unable to make a new swing high and has since rejected.
With that in mind, I've marked 2 significant short term support levels that have both been retested as resistance and held.
The larger resistance zone is drawn from the daily chart, while the smaller ones are drawn from areas of short term support turned resistance which we want to use as possible entry points.
Now take a look at how price action unfolded throughout the trading day.
SPX Daily Updated:
Price retested short term support as resistance and the assumed full control of the market, sending it to fresh new lows.
If you took an aggressive stop, placing it just above the intraday retest, then you've got an easy 1:3 already.
If you were more conservative with your stop and are looking to hold this trade for a bit longer, then let's see if this is the start of a more sustained move lower.
Best of probabilities to you,
FOREX BROKR | Hive Blog
Higher time frame market analysis.
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