SPX500 intraday dips continue to attract buyers.US500 - 24h expiry
Buying pressure from 5714 resulted in all the initial daily selloff being recaptured.
Broken out of the channel formation to the upside.
Price action continues to trade around the all-time highs.
Dips continue to attract buyers.
We look to set longs in early trade for a further test of the fragile looking resistance.
Our profit targets will be 5785 and 5800
Resistance: 5780 / 5784 / 5800
Support: 5745 / 5730 / 5714
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SPX (S&P 500 Index)
Types of traders 101Overview of types of traders
SCALPER
🔸Scalpers buy and sell securities quickly, usually within seconds, with the aim of achieving profits from minuscule price changes from large trade volumes.
🔸Scalper also refers to someone who buys up in-demand merchandise or event tickets to resell at a higher price.
🔸Scalpers buy and sell securities many times in a day with the objective of making consistent net profits from the aggregate of all these transactions.
🔸Scalpers must be highly disciplined, combative by nature, and astute decision makers in order to succeed.
EATRADER / Algo Trader
🔸Algorithmic trader will use process- and rules-based computational formulas for executing trades.
🔸 Algorithmic trader is performing statistical analysis on stocks, funds, or currencies and then writing algorithms and programs using computer languages like C# or Python or PineScript.
🔸While it provides advantages, such as faster execution time and reduced costs, algorithmic trading can also exacerbate the market's negative tendencies by causing flash crashes and immediate loss of liquidity.
Technical Trader
🔸Generally, a technician uses historical patterns of trading data to predict what might happen to market in the future.
🔸A technical trader prefers to study price patterns over time periods ranging from a few minutes to a month. This is usually done using a variety of tools, such as indicators, to understand which way price is moving in any given market.
Swing Trader
🔸Swing trading refers to a trading style that attempts to exploit short- to medium-term price movements in a security using favorable risk/reward metrics.
🔸 Swing traders primarily rely on technical analysis to determine suitable entry and exit points, but they may also use fundamental analysis as an added filter
Fundumental Trader
🔸Fundumental trader focuses on company-specific events to determine which stock to buy and when to buy it. Trading on fundamentals is more closely associated with a buy-and-hold strategy rather than short-term trading.
🔸Furthermore, fundumental traders must understand technical analysis to identify trends and price patterns supporting their fundamental analysis.
Money Manager
🔸A money manager is a person or financial firm that manages the securities portfolio of individual or institutional investors.
🔸 Professional money managers do not receive commissions on transactions; rather, they are paid based on a percentage of assets under management.
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S&P500: Bullish until the end of the year.Excellent bullish technicals on its 1D outlook for the S&P500 (RSI = 64.960, MACD = 69.000, ADX = 26.170), despite turning mostly sideways in the past trading days. However, having reached the HH trendline, we can see from the past two similar patterns that a consolidation is normal and as long as the 1D MA50 holds, the index is more likely to continue the uptrend. We are expecting a similar +15.00% rise (TP = 6,200) to close the year out.
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Megaphone - BearishSPY weekly looking interesting heading into the week. Staying hedged with the SPY holding another megaphone. The SPY is being carried by buyer volume with some hidden bearish divergence on the RSI and nearing overbought territory yet again.
With so many sectors and indexes flashing red and a massive bearish cipher on the weekly timeframe as further confirmation, looking forward to playing the downside.
Some FIB levels and RSI-based supply and demand zones to keep an eye on in the meantime (Accompanying Charts Attached Below)
S&P sets new high but weakness is mountingLast week, the market traded within a narrow range, yet still managed to reach new highs. The bulls remain in control of both the daily and weekly timeframes, although I’m not entirely comfortable with the structure that has developed over the past five days. Most of the growth occurred during extended hours, while during regular trading hours, the market either remained in a tight range or moved downward. This structure is fragile and could easily break, though I’m not ready to call for shorts just yet.
Firstly, it hasn’t broken. We're still in a bullish wave on the daily timeframe — in the past two weeks, none of the days have closed below the previous day's low. Secondly, even if the structure breaks, we should not expect significant follow-through, as the market remains very bullish.
Here's a quick recap of the key points supporting the bullish thesis (you can find the rest in my previous review):
1. The Fed cut interest rates by 0.5 percentage points, which is positive for both the economy and the stock market for several reasons, such as cheaper borrowing costs.
2. The SPX has reached a new all-time high, which is highly bullish.
3. Both the weekly and daily charts show a strong uptrend.
For the market to reverse, there would need to be a significant shift in sentiment, likely triggered by some fundamental event. From a technical standpoint, the uptrend remains intact as long as the bulls hold the previous major low ( 538 ). Until then, any "red" waves should be viewed as mere pullbacks within the broader upward movement.
SPX: boosted by lower inflationThe Fed's rate cut and further slowdown of the US inflation boosted the US equity markets, where S&P 500 reached the newly fresh all-time highest level as of the end of the previous week. The highest weekly level reached was 5.761, while the index is closing the week at the level of 5.738. Released inflation data showed that the Fed's favorite inflation gauge, the PCE index slowed down further to the level of 2,2% y/y in August, below market consensus, which increased sentiment in investors that the Fed might confidently cut rates further during the year. On the other hand, the environment of decreasing interest rates will be supportive to business, increasing expectations of higher profitability in the coming period.
Analysts are noting that, with a cooling inflation, the Fed might now fully focus on the labor market in the coming period, and expect a positive impact for the further strengthening of the US economy. Aside from the tech companies, the materials sector especially gained during the week, adding a 3,4% to the value of stocks in this sector for the week. There are analysts who are pointing that the financial sector might also gain in the coming period, with an increase in lending activity.
Weekly Recap & Market Forecast $SPX (Sept 29th—> Oct 4th)**Looking Ahead:**
Next week will feature several key events and data releases:
- **U.S. Jobs Report**
- **U.S. PMI Surveys**
- **Fed Chair Powell Speech**
- **Earnings Reports:** Nike ( NYSE:NKE ), Carnival ( NYSE:CCL ), Levi Strauss & Co. ( NYSE:LEVI ), Constellation Brands ( NYSE:STZ )
- **Tesla Q3 Deliveries ( NASDAQ:TSLA )**
As we look forward, these developments will be crucial in shaping market sentiment and guiding investment decisions. If you have any questions or need further insights, feel free to reach out. Here’s to another week of informed investing and strategic decision-making! 🌟
Mastering Market Signals &How to Use the VX Algo? In this video, we'll break down how to maximize your success rate by using key indicators and strategies during the optimal trading window (9:00 AM - 2:00 PM EST). Learn how to identify high-probability buy and sell signals, manage risk effectively, and stay in the 'winning zone' like a pro. Whether you’re a beginner or an experienced trader, this guide will help you gain the edge you need to navigate the markets confidently. Don't miss out on these actionable insights!"
Hashtags: #TradingStrategy #VXAlgo #StockMarket #DayTrading #AlgoTrading #MarketSignals #TradingSuccess #Investing #Finance #TradingTips #MarketAnalysis #Stocks #ESFutures #FinancialFreedom
spx &nasdaq in an iminent drop of valuespx showing an iminent short going in value, where it can go? last time i tryed to do the math it would go arround 2700 but without any sure, the major stock whealtiest did a 3x wealth since covid drop, this could be another timer that can quintuple the value, or make more 15x time the value that they had before covid, it is an iminent drop coming, in my opinion, good for everyone even for world economies, to triple their whealth and put the profits in their balance sheet and put time their gdp growth, is a question of timing, after covid drop, that in my opinion, didnt had too much growth in manufactories and jobs, only people gowing ther whealth by the 'inflation' fault,
anyway, there is an iminent drop in the stock market in the western countries, at least, im not into asian market but american indexes are in an eminent significant drop, in my POV.
The S&P rally continues, defying all fears of a recessionLast week was marked by erratic price movements, leading many to recall the old adage, "no trade might be your best trade." The most confusing (and devastating) price action occurred on Thursday following the FOMC's interest rate decision. The Fed cut rates by 0.5 percentage points, sparking fears of an upcoming recession. Wednesday ended with a strong bearish "falling star" candle, tempting traders to take large SHORT positions. To be honest, I would have likely done the same if I had been trading that day (luckily, I wasn’t), as the least one would have expected was an overnight rally that wiped out short positions when the market opened on Thursday.
This series of events is a perfect example of what makes trading so challenging— even a solid setup can fail spectacularly without any clear reason.
Now, let's try to assess the current situation :
1. The Fed cut rates by 0.5 percentage points – This is actually positive for the economy and the stock market for many reasons (e.g. cheaper borrowing costs). At the same time there are no objective signs of a recession, only fears.
2. The SPX reached a new all-time high – How can this be bearish?
3. Both weekly and daily charts show a strong uptrend.
4. Almost all major SPX sectors closed the week strong, reflecting investor confidence.
In summary, the market remains very bullish , with no indication that the trend is reversing anytime soon. Short term price action might be erratic, but long-term things look good both from technical and fundamental perspectives.
Let’s stay calm and prudent.
Important levels:
Last major weekly high (538). As long as it holds buyers have control over weekly chart.
Bullish Stocks, But Watch Pullbacks and Gaps On SP500The stock market has been very bullish over the last two weeks, with strong gains this week following China's policy actions to support their economy. This has had a positive impact on stocks globally, and it’s no surprise to see the S&P 500 trading higher. Looking at the December futures contract, from an Elliott Wave perspective, we can clearly see a five-wave movement up from the September 9th low.
While this bullish momentum continues, it’s important to be cautious as we may be nearing potential resistance in this fifth wave, around the 5,820 to 5,880 area. I think that pullbacks could occur in the next few days, especially if USD stays up with yields. If we do see a correction, the key levels to watch would be the previous swing supports, with the first at 5,754 followed by 5,674. These levels also correspond to regions of open gaps on the cash market, and typically when such gaps are filled, the market can resume its primary trend, which is up. So, if an ABC drop occurs into one of these gaps, it could present an opportunity to rejoin the uptrend in the stock market.