The morning pump - is it valid?I have my doubts the rally will last, however if they get over the previous highs it is likely going to 5700+
SP500 trade ideas
Liberation morningMarkets did sell off last night and the VIX did start breaking up, so I believe another leg down is upon us. However, the chance for a C wave rally from the lows is possible, so caution is necessary.
Falling towards pullback support?S&P500 (US500) is falling towards the pivot which acts as a pullback support and could bounce to the 1st resistance which is an overlap resistance.
Pivot: 5,405.74
1st Support: 5,176.07
1st Resistance: 5,769.85
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
S&P 500 Wave Analysis – 1 April 2025
- S&P 500 reversed from support area
- Likely to rise to resistance level 5700.00
S&P 500 index recently reversed from the support area located between the support level 5500.00 (low of the previous wave (A)), lower daily Bollinger Band and the 61.8% Fibonacci correction of the uptrend from August.
The downward reversal from this support area stopped the earlier short-term impulse wave 1 of the downward impulse sequence (C) from the end of March.
Given the improving sentiment across the equity markets and the strength of the support level 5500.00, S&P 500 index can be expected to rise to the next resistance level 5700.00.
S&P500 Last time it made that bottom was 18 months ago.S&P500 / US500 is trading inside a multi year Channel Up that goes back to October 2022.
The index almost hit the Channel bottom this week and immediately we see a rebound attempt.
It may be under the 1week MA50 but this is not disastrous as the patterns last bottom was formed exactly under it on October 23rd 2023, 18 months ago.
On top of that, the 1week RSI was exactly where it is now, on the 40.00 Support, bearish enough to call for a long term buy.
In addition, the both bearish waved leading to both bottoms were almost -11%. This high symmetry potential suggests that the bullish wave that will follow may be of a similar +28.34% rise.
This is a unique opportunity to buy and target 7000.
Follow us, like the idea and leave a comment below!!
I spy an Evening Star Doji on SPXso alot is going on. when we gapped up and ran nonstop 3/25-3/26, i decided to look for reversal signals. tues was a tight range. it formed a doji; which was suspect. the move below the open print today was the second. and now i see we are up on a tweet and a prayer. this 3 candlestick pattern confirms that. however... the higher timeframes are in a wide range. so, if we reverse the bearish candlestick >5720 i believe we can retrace a bit... maybe revisit the sell fell off area.
***to invalidate the sell trigger, we need to bet above the doji.
***if we do keep rocking and rolling... note this area. it is an unfilled gap as of now. if it gaps down, wait to see how 1st 15-30mins react. looks like ES-emini gapped down a bit. that may be it, but this is an A+ set up for a trip back to take out short term lows at least. tootles!
For more on the pattern... I love the breakdown/visual provided here:
alchemymarkets.com
SnP500: A case for going longYesterday the index was bought up strongly from the lows with solid volume.
I'm in favor of further growth.
Set the stop loss below yesterday's low.
SPX update - retesting 6000 before 6340In my updated view we can see a retest o 5995-6000 area before dump to 3340 where last bullish leg will start to new ATH @6444
SPX retesting 5900 before dumping to 5200 areaIN my view SPX could retest 5900-5910 area before new bearish leg to 5230 area where last bullish wave will start to final tp 6444
post market run down Things I'm seeing post market. I still lean bearish but a gap up tomorrow would negate my idea.
BUY AND HOLD UNTIL OCTOBER 2025Price is scheduled to break above the current high for a 7-month run, price top is expected between 6588 and 6680 range for a steep correction. Tariffs and recession chants will have their day but history shows post war cycles never go south.
Trade safe, good luck
SPX next 5 years outlookIn this chart I show my SPX long term view from covid recovery to about 2030.
SPX is moving in a big rising wedge, I think that on the long term prospective we're still in the 3rd bullish wave targeting 6440 area. From there I see a retracement (4th wave) to 4800 area before last bullish 5th wave to 7400 area.
From 7440 I see a sharp bearish retracement , the breaking of rising wedge will lead spx to target 4200 area.
On the medium term I think that we've to test 3320 area before targeting 6440 (completion of 3rd wave), but on the short term I see a retracement to retest 6000 area before dump to 3320.
US500 Price ActionHello Trader,
As you can see, the market is currently moving to the downside, approaching a clearly identified Demand Zone. Remember, as I always emphasize: no liquidity, no valid zone. Therefore, I've also marked liquidity levels located just above this Demand Zone, along with a suggested safe Stop Loss (SL) placement. However, please keep in mind that no level is truly "safe" in trading, which is precisely why we always use stop losses and actively manage risk on every trade.
Additionally, I've highlighted two potential Take Profit (TP) areas: one where you might consider closing your trade early for safety, and another where you could hold your position if price action continues to move favorably.
As always, avoid greed, prioritize risk management, and trade responsibly.
Wishing you all the best and happy trading!
Thank you.
SPX: tariffs combined with inflationInflation expectations are on the rise again in the US. As markets are closely watching developments with trade tariffs, in combination with increasing inflation, the sentiment ended the week in a red zone. During the week, the S&P 500 was struggling to sustain a bit of positive sentiment, however, Friday's trading session brought back significant sell off of stocks. The week started at 5.780, but it ended at 5.580, losing 1,97% on Friday. In the last six weeks, the index spent five weeks in negative territory.
Tech companies were the ones that dragged the rest of the market to the downside. META and Amazon were down by 4,3%, Apple dropped by 2,66%, Tesla lost 3,51% in value. Trade tariffs are still a cloud which brings high uncertainty to the market. News reported that both Canada and the European Union are considering reciprocal measures as a response to the imposed US tariffs. The US Administration announced last week potential 25% tariffs on all car imports to the US. As long as this kind of trade war is in the open space, it could not be expected that the market would consolidate and stabilize. In this sense, further high volatility might be expected. In the week ahead, the NFP and unemployment data for March will be posted, so this would be a day to watch.
Falling towards pullback support?S&P500 (US500) is falling towards the pivot which acts as a pullback support and could bounce to the 1st resistance which is an overlap resistance.
Pivot: 5,405.74
1st Support: 5,176.07
1st Resistance: 5,769.85
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
SPX weekly sell off confirmedBetter have some cash in hand, if SPX drop more, BTC will drop even more.
new indicator using options data ++ some project i'm working on.
# Analysis of the S&P 500 Trading Dashboard Data
I'll explain the key data elements used in this technical analysis dashboard and how they contribute to the trading conclusions.
## Key Price Levels and Their Significance
The dashboard identifies several critical price levels for the S&P 500:
- **Max Pain ($5,785)**: This represents the price level where options writers would experience the least financial pain (i.e., where the fewest options contracts would be in-the-money). The distance from the current price ($5,557.41) to max pain suggests significant upside resistance.
- **Resistance Levels ($5,700 and $5,650)**: These represent areas where selling pressure is expected to increase. The $5,700 level is backed by data showing 13,877 call option contracts at this strike, creating a "wall" of resistance.
- **Short Entry Zone ($5,595)**: This level was previously support that has been broken, making it a high-probability entry zone for short positions following the principle that broken support becomes resistance.
- **Battle Zone ($5,550)**: An area with heavy options activity on both sides (puts and calls), indicating potential price volatility and uncertainty.
- **Critical Support ($5,500)**: A psychologically important round number that also represents a significant technical level.
- **Target Levels ($5,450 and $5,400)**: Projected price targets for short positions based on previous support levels and technical measurements.
## Options Market Data
Two key options metrics are used to inform the analysis:
1. **Put/Call Ratio (1.80)**: This is significantly elevated above the typical range of 0.7-1.2, indicating:
- Unusually bearish sentiment
- Hedging activity by institutional investors
- Potential for a contrarian bounce if it exceeds 2.0
The high ratio suggests market participants are purchasing put options for downside protection at an elevated rate compared to call options, confirming bearish positioning.
2. **Gamma Exposure (-$17.37 Billion)**: This negative value indicates:
- Market makers are net short gamma
- They must sell more futures as prices fall to maintain delta hedges
- This creates a self-reinforcing downward spiral effect
Gamma exposure represents the rate of change in delta (directional exposure) for options market makers. The large negative value suggests that downward price movement will accelerate as market makers must sell more futures to remain hedged, creating a "cascade effect" amplifying price movement.
## Technical Indicators and Their Interpretation
The dashboard incorporates several technical analysis components:
### Price Action & Moving Averages
The analysis indicates price is trading below all major moving averages (20/50/100/200 EMAs), a classic sign of bearish momentum across timeframes. When price trades below all these moving averages in sequence, it creates what traders call "bearish alignment," a strong confirmation of downtrend.
### Momentum Indicators
- **RSI (Below 30)**: Indicates oversold conditions but in a strong downtrend, oversold conditions can persist. The analysis correctly warns against fighting the trend despite the oversold reading.
- **MACD (Below signal line)**: Confirms negative momentum is in place, suggesting continued downward pressure.
- **ACWF (Negative)**: A specialized momentum indicator showing continued bearish pressure.
### Volume Analysis
- **On-Balance Volume (Declining)**: Indicates more volume on down days than up days, suggesting distribution (selling pressure).
- **Volume on Down Bars (Increasing)**: Higher volume on declining price moves is a classic sign of seller control and distribution.
### Chart Patterns
- **Head & Shoulders Pattern (Completed)**: A reversal pattern that typically projects further downside after completion.
- **Elliott Wave Count (Wave 3)**: Wave 3 is typically the strongest and longest wave in Elliott Wave theory, suggesting significant continuation of the downtrend.
## Volatility Assessment
The ATR (Average True Range) values of 9.18-98.75 indicate elevated and increasing volatility, which informs the risk management recommendations:
- Reduce position size
- Use wider stop losses
- Expect larger price swings
This is prudent risk management in high-volatility environments, as normal position sizing could lead to premature stopouts due to wider price swings.
## Trading Recommendation Logic
The primary strategy (65% probability) of continued downside is based on the confluence of:
1. Bearish technical indicators across multiple timeframes
2. Negative gamma exposure creating a self-reinforcing downward spiral
3. Broken support levels and completed bearish chart patterns
4. Wave 3 Elliott Wave structure which typically has the strongest momentum
The strategy recommends:
- Entry at $5,590-5,600 (former support, now resistance)
- Stop loss above $5,625 (limiting risk to approximately 30 points)
- Targets at key support levels: $5,500, $5,450, and $5,400
- Reduced position size due to high volatility
The alternative strategy (35% probability) acknowledges the potential for a reversal at the $5,500 psychological support level, but only with confirmation signals like volume decline and stabilization patterns.
## Educational Elements
The dashboard incorporates several educational elements:
1. **Elliott Wave Theory**: The identification of Wave 3 of a 5-wave downtrend sequence suggests the current move is likely the strongest part of the larger bearish structure.
2. **Options Market Mechanics**: Explanation of how negative gamma exposure creates a self-reinforcing price action effect as market makers hedge their positions.
3. **Technical Analysis Patterns**: Clear labeling of patterns like the Head & Shoulders and broken uptrend line, along with their implications.
4. **Risk Management**: Specific recommendations for position sizing and stop placement in a high-volatility environment.
This analysis combines price action, options market data, technical indicators, volume analysis, and chart patterns to create a comprehensive trading approach with specific entry, exit, and risk management parameters.
S&P500 IndexIf the midline of the linear regression channel is broken, the price will continue to decline until it reaches the support line of the inner channel (in light blue), which is at one standard deviation.
In the less likely event that this support line is also broken, we have the support line of the outer channel (in yellow), which is at two standard deviations.
(Logarithmic price axis, channel starting from 2008)
S&P entering rough path in 2025 It seems S&P is going through a soft bounce back after selloff towards 10W MA around 58-5900 levels. This could be the strong rejection leading to summer lows around 52-5300 range .
If Macro is promising could resume bull run by providing good entry otherwise a recovery towards 5600 which eventually sees 4800 or 2021 ATH making a long range for 4-5 years providing 2026 to reach towards 5800 level by end of December 2026 and giving a new ATH only in 2027 .
