S&P 500 IndexShort
SPX500 Trade Idea: Bearish Reversal Setup
I am currently watching SPX500 for a potential bearish reversal to the downside. The price action is indicating a weakening uptrend as we approach key support at 5666.40.
Key Support Level: 5666.40
Trigger: A daily close below this level will confirm the breakout, flipping the previous support into resistance. In turn, that will be a fakeout in the market
If the price closes below 5666.40, I will be looking for a retest of this level. Once confirmed as resistance, it would signal a continuation of the downward move.
Trade Plan:
Entry: Upon a successful retest of 5666.40 (now acting as resistance).
Stop-Loss: Above the previous high formed during the retest.
Target: I am aiming for the next support area near 4790.95, which aligns with a key historical level of demand.
This setup provides a favorable risk-to-reward ratio if the bearish reversal plays out as expected. I will be closely monitoring for confirmation before entering the trade.
Eddy C | Swing Trader
Key Support Level: 5666.40
Trigger: A daily close below this level will confirm the breakout, flipping the previous support into resistance. In turn, that will be a fakeout in the market
If the price closes below 5666.40, I will be looking for a retest of this level. Once confirmed as resistance, it would signal a continuation of the downward move.
Trade Plan:
Entry: Upon a successful retest of 5666.40 (now acting as resistance).
Stop-Loss: Above the previous high formed during the retest.
Target: I am aiming for the next support area near 4790.95, which aligns with a key historical level of demand.
This setup provides a favorable risk-to-reward ratio if the bearish reversal plays out as expected. I will be closely monitoring for confirmation before entering the trade.
Eddy C | Swing Trader
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