SPX500 trade ideas
SPX....An interestng observation!10/4/25
spx....an interesting observation..
index has been travelling between the blue median which is a very strong support and the red median which is a very strong resistance.............this travel started s0me time in 2009....and is still ongoing!
only during 2008/2009 lehman collapse and 2020 covid did the index go below the blue median....
will it slip the blue median again or move north again to retest the red median? only time will tell..
but we have the contours to monitor!
US 500 Index – Retracement Holds DeclineAfter one of the most extreme trading days for the US 500 index that we have seen since the pandemic of March 2020, a slightly uneasy calm has descended across markets this morning as traders await the next tariff updates from President Trump and his team of advisors.
Right now it is still unclear whether President Trump would provide an opportunity for individual trading partners to reduce the penalty level or gain exemptions from the reciprocal tariffs that are due to go into force tomorrow.
Traders are also on the lookout for any news from China regarding tariffs or fresh stimulus measures to support the economy, and the announcement of retaliatory actions from the EU are still on the horizon.
What is clear, is that as this unfolds across the rest of today and tomorrow, being prepared for any volatility in the US 500 index that may appear again, with a trading plan, clear assessment of technical levels to deploy any potential stop loss and take profit orders, may well be a solid approach to consider.
Technical Update: US 500 Index - Retracement Holds Decline
During times of market turmoil, where sharp declines in the price of an asset are seen to reverse what was previously a strong phase of strength, traders will often focus on using Fibonacci retracement levels to identify potential support levels.
Clearly, global equities have recently entered a period of uncertainty and aggressive price declines. However interestingly, the US 500 index has found support this week at a Fibonacci retracement level, which at least for now, has succeeded in holding declines, and is even starting to see attempts at an upside recovery materialise.
Looking at the weekly chart of the US 500 index above, we can see the latest price capitulation tested 4791, which is equal to the 50% Fibonacci retracement of the October 2022 to February 2025 advance.
Traders may now be asking ‘Do the latest price declines to 4791, represent the extent of the current liquidation in assets, and can upside now emerge again?’
It is currently impossible to answer this question with any true conviction as there is still much to be heard from President Trump regarding tariffs, which will likely dictate future market sentiment and price trends.
However, monitoring important support and resistance levels over the upcoming trading sessions may help us gauge where the next potential directional moves may be seen in the US 500 index.
Possible Support Levels to Monitor:
Having tested the 4791 Fibonacci retracement level and seen a recovery develop from it this week, it may be suggested this remains an on-going downside support focus in price. As such, it may well be closing breaks of this level if seen, that could skew directional risks towards the potential of further declines.
Therefore, closes below 4791 might be an indication that the recent weakness may carry further to the downside, prompting traders to look for possibilities of a more extended decline in price. This may in turn lead to tests of 4474, which is the deeper 62% retracement, maybe even further if this gives way.
Possible Resistance Levels to Monitor:
Having seen the 4791 support hold and prompt the latest recovery moves, some traders may well be looking for the potential of a more sustained recovery in price, even though much will depend on the reaction to any future trade war escalation or easing of tariff concerns.
By calculating Fibonacci retracements on the latest US 500 index decline, we may be able to gauge possible target resistance levels if a recovery in price is to emerge.
The 38.2% Fibonacci retracement of the February 2025/April 2025 sharp sell-off stands at 5313. This may be an interesting level to watch, as if it were broken on a closing basis traders may start to look for fresh attempts to push towards higher levels once more. In this case, the 50% retracement resistance level which stands at 5474, and the 61.8% level at 5635, could be relevant.
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The Bear's Dilemma: Bull trap styles and bets. Anyone of a bearish persuasion always runs into the same issue when we rip like this.
If you know bull trap formation, you know they form like this. It's always tempting to fade- but if you are objective about whether you'll be right at all as a bear and also consider the different style of bull traps, you have to be aware of the risk. Because your idealised signal is stupidly strong move up, but this can also happen when a new high will be made.
Successfully dealing with bull traps in such a way as to profit big when right and do okay even if not, you have to think ahead.
If you follow my work you'll know I have a rather static style as to how I try to do this. When we're dropping into big supports, I always tend to discuss these different types of bull traps and I always try to buy where I think the low is. Citing that not only am I doing it for the immediate chance to make money long- but it's an important part of my bear plan later.
I know if I get the first trade right even just betting on a rally to the shallow retracement level, I catch between half and a third of the move up. This is going to cover my risk for what I'll spend if I get on all the bear traps and all of those setups fail. It allows me to get on them on with increasing RR. More scope for profit with a well predefined risk.
Into a rally I always look to fade the shallow bull trap. Very often that at least produces a dip. So I can often position for a 1:10 or better RR trade and generally will breakeven on the attempt if I get it wrong. Only in the times of extreme run-away moves does this fail. And I accept those are conditions I should expect to lose in.
If and when I think I am seeing signs of the shallow trap failing I get long targeting the 76 trap. Hitting this trade can be extremely lucrative and it allows me to either be sure a net profit on the swing or have the option to size my bear bets bigger aiming for a big jackpot if it works out.
When buying I consider all the main ops/risks.
Here's the new high move mentioned into the drop.
Here's the classic 76 which would also present as a head and shoulders (and butterfly) pattern now.
When I plan my bull trap trading I am always wanting to buy at the green arrows and short at the red.
I also do this with the assumption I'll be entirely wrong and lose all of my bear bets, and I try to structure it in such a way that will be massively net profitable if I hit my bull trades.
Bulls tend to show up on my posts being somewhat rude any time I do this- but this is outperforming buy and hold. At worse, I'm level when we get back to the top. Usually, I'm considerably ahead. And in the one instance the market makes the big reversal - I know I'm going to be left standing. Perhaps standing in very good stead if I get it right.
Using this basic template I find extremely useful for dealing with bull trap betting.
It provides a functional and practical framework to be able to benefit from most types of moves. Doesn't pretend to know the future. Is essentially direction agnostic. Can be quantified as profitable with backtesting against both rallies that make a new high and crash events - often with extreme outlier results in crash events.
Whatever happens, and whatever news drives it, this is the plan I'll execute on so long as the market moves in a way relatively similar to my template.
Bullish Flag In The SPX/USDWhat's going on Traders? Making money I hope! What if I told you you could make some more $
Yepper! That's right! There is another chance at making some more cash if the flag pattern in SPX plays out.
Measured move; TP-1 5501.6 area.
TP-2 5794 area.
Believe it or not but we likely going higher.
Best Of Luck In All Your Trades.
CHEERS! $$$
SPX repeating 2022 patternI had said in a earlier post( see link to Related publication) that Vix is indicating we will be in 2022 style market and so far indeed it is, except for the breakdown from the wedge last week.
Expect the price to fluctuate within the wedge to consolidate before a breakout
The comparison shows close similarity of the wedge and path (except last week)
Buckle Up for the Next Part of the Huffy CycleAs everyone knows, indices move on a predictable 4 month cycle - known as the "Huffy cycle", and this is programmatically built into markets are Donald Trump switches from being "Huffy" (Down moves) to "Less Huffy" (Parabolic organic growth moves). Donald has been huffy lately ... so we ALL KNOW what comes next ...!
Are you mentally prepared for the next glorious breakout of the Huffy cycle?
I'm sure everyone has noticed the 4 month huffy cycle which can be extensively studied, understood and used to forecast the future flawlessly because if we look at markets over 12 months we can see it looks a little bit kinda like a pattern - so long as you just ignore or remove the parts that are not a pattern. Which is how market cycles work.
If you see something a few times, you can be sure it will happen again forever. And if it doesn't you can be sure at worst it can only go down 70% and then it's probably a buy from there.
So the huffy cycle is basically risk free, if you look at it in the right way.
"But what about all the the things happening" I hear you ask.
Lol.
NGMI!
If you're too stupid to understand the huffy cycle, that's your problem. Not mine! HFSP.
Now, of course we all know SPX is not where near gambley for us to generate our birth right generational wealth from the markets. It could take literally YEARS to make money in SPX. Who has time for that? Of course, we want to be looking at the most stupid and speculative things we can - because those are the ones the savvy investors are buying.
That's right folks .... "Squeeze season" is upon us.
It's been 4 years since we seen anything make any truly irrational hyper parabolic moves in stocks. As we all know, this is too long. Stonks are not allowed to go this long without there being a squeeze cycle. Some doomers out there are even saying squeeze season has been cancelled (lmao ok boomer) - but we know the truth.
Squeeze season has just BEEN DELAYED and it being delayed actually means it will just be BIGGER THAN EVER!
I don't really have any logic or ideas to back up why it was delayed and why this means it will be an even bigger move, but if I say the word "Whales" I think that covers everything.
There are some idiots who are sceptical of the huffy cycle, but I am only writing my post for the future billionaires who are not too bothered about checking the details.
And we all know what comes next!!!
WGMI, fam.
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Entry 📈 : "The heist is on! Wait for the MA breakout (5400) then make your move - Bullish profits await!"
however I advise to Place Buy stop orders above the Moving average (or) Place buy limit orders within a 15 or 30 minute timeframe most recent or swing, low or high level for Pullback entries.
📌I strongly advise you to set an "alert (Alarm)" on your chart so you can see when the breakout entry occurs.
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📍 Thief SL placed at the recent/swing low level Using the 1H timeframe (5100) Day trade basis.
📍 SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
🏴☠️Target 🎯: 5800 (or) Escape Before the Target
🧲Scalpers, take note 👀 : only scalp on the Long side. If you have a lot of money, you can go straight away; if not, you can join swing traders and carry out the robbery plan. Use trailing SL to safeguard your money 💰.
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⚠️Trading Alert : News Releases and Position Management 📰 🗞️ 🚫🚏
As a reminder, news releases can have a significant impact on market prices and volatility. To minimize potential losses and protect your running positions,
we recommend the following:
Avoid taking new trades during news releases
Use trailing stop-loss orders to protect your running positions and lock in profits
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SPX Aiming Lower LowsHi there,
The S&P 500 has pushed below the significant resistance level of 5821.54, with an immediate target at 5370.17 before reaching major support around the 5218 region. We could potentially see a further drop to 4500, with 4719.87 on the way.
It will require monitoring, and the bias is at 4026.79.
Happy Trading,
K.
Not trading advice
We are not in a bear marketIt´s amazing how social media is trying to provoke fear. We are not in a bear market. Even if there has been a more than a 20% drop. This is only an idea of a person: Donald Trump. Everything has been orquested by him and his team.
The real bear market will trigger when the 50MMA is broken down or the 200WMA. Until then, be ready for a blow off top to 7000 in the next 12 months.
Trump Pump Just Broke the Charts12% Up in a Day. Now What?
What a difference a headline makes.
Monday:
Markets dump. Panic. Retail sells the low.
We hit our bearish targets like clockwork.
Wednesday:
Markets explode like they found a cheat code.
SPX rallies 9.5% in a day.
Nasdaq? A completely unhinged 12% up.
All because… tariffs might be paused again.
You can’t make this stuff up.
But you can trade it.
When Euphoria and Edge Collide
The Trump Pump Parade
After last week’s fake-news-induced dump, we now have headline euphoria.
No earnings beat. No rate cut. No macro shift.
Just one rumour:
“Trump might pause tariffs.”
Cue the biggest one-day rally since 1933.
Nasdaq: +12%
SPX: +9.5%
SPX now kissing the 5400 bull trigger level
Financial media?
Throwing a rave.
Retail?
FOMOing back into the top.
It’s madness.
But it’s not structure.
The System Trader’s Reality
Meanwhile, in the AntiVestor camp…
The bear swing is still on but under review.
Why? Because we trade levels, not vibes.
And 5400 has always been our pivot.
We’re now sitting right on it, with overnight futures starting to drift lower – like the market just realised it left the oven on.
The decision zone is here.
Hold 5400?
It’s time to shift gears.
Bull thesis activates. Tag ‘n Turn setups. Bull Pulse Bars. GEX Bulls Eye trades.
Lose 5400?
We go right back to feeding the bears.
It’s not emotional. It’s mechanical.
This is what system trading looks like.
---
Expert Insights: The Market Owes You Nothing
Mistake:
Getting emotional after missing a rally or overstaying a short.
Fix:
Use a system with defined levels.
5400 was always the line.
You don’t need to guess the pivot. You just need to trade it when it confirms.
This rally may be overblown.
But until the market proves otherwise, you don’t fight the tape – you ride it with structure.
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Fun Fact
The last time the Nasdaq moved more than 10% in a day?
March 13th, 2020 – the height of COVID panic buying.
That rally was followed by… a further drop.
Then a V-bottom.
Then a massive bull market.
So… is this the start of something new?
Or just another overcaffeinated bounce?
History says: Don’t decide early. Let price confirm.
Bulls are not of the woods, not by far1. What happened yesterday?
In my weekend analysis covering US indices , I mentioned that US500 (SP500) could drop and test the ascending trend line starting back at the pandemic low. This line is confluent with the horizontal support level given by January 2022 ATH, offering a good opportunity for traders to open long positions.
Indeed, at least on CFDs and futures, this trend line was touched, and the price rebounded strongly from there.
2. Key Question:
Will we have a full V-shape recovery, or will the price drop back below 5k in the coming sessions?
3. Why I expect a continuation of the correction:
🔸 Strong Resistance: The US500 has established a robust ceiling around the 5350-5400 zone(also a gap there)
🔸 Lack of Building Momentum on Support: There's no clear indication that this resistance will be broken anytime soon with the lack of accumulation under 5k
🔸 Potential for Further Decline: Given the current market structure, a drop below 5k remains a realistic possibility in the upcoming sessions.
4. Trading Plan:
🎯 My Strategy: Playing the range.
✅ Buy near the 4800 support.
✅ Sell into the resistance zone between 5350 and 5400.
5. Conclusion:
I’m watching for market confirmations and will continue applying this range strategy until there’s a clear directional change. 🚀
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
S&P 500: Valuation Correction or the Start of a Breakdown?Valuation Correction or the Start of a Breakdown?
Zoom out. Clear the noise.
We might still sweep the lows, but when viewed on the weekly timeframe, this current S&P 500 move looks more like a healthy valuation correction than a structural breakdown.
Let’s break it down by the numbers using fractal analysis:
🟩 March 2020 (COVID Crash):
▪️~35% drop
▪️V-shaped recovery
▪️Oversold RSI bounce
🟨 2022 Bear Market:
▪️~27% correction
▪️Multi-month wedge consolidation
▪️Eventually led to an upside breakout
🟦 Now (2025):
▪️~21% correction so far
▪️Retesting long-term trendline
▪️RSI in familiar oversold zone
📊 Fractal Math:
- From 35% to 27% = 22.86% decrease
- From 27% to 21% = 22.22% decrease
Both legs show a consistent ~22% drop in correction depth suggesting bearish momentum is weakening with each cycle. Currently bouncing off the1844 days of support.
Is this the bottom? Will there be relief?
🔁 If this pattern holds:
- We could see a short-term sweep or deviation under recent lows.
- But structure favours a potential recovery from this zone, unless the trendline breaks decisively.
📌 Watch levels closely. Timing matters.
🧠 What’s your take, is this another “buy the dip” moment?
Do hit the like button if you liked this update and share your views in the comment section.
SP500: Optimism in the markets !! No Fear !!Mr. Trump MANIPULATES THE WORLD as he pleases, and WE AS ANALYSTS have to BE COLD and be VERY ATTENTIVE to the news MORE THAN EVER!! And of course, NO FEAR.
--> What does the SP500 and the rest of the indices and stocks look like?
From my point of view, yesterday's news of granting a 90-DAY TRUCE on tariffs GIVES US THE POSSIBILITY OF UPSIDES for at least the next 2 months (ALWAYS with Trump's permission). Furthermore, we've also learned that US inflation fell to 2.4% in March, and the core rate to 2.8%, below expectations, which is VERY GOOD for the markets.
With this data and the SHARP FALLS accumulated so far this year!!, UPSIDES ARE COMING!!
Yesterday, the indices rose by nearly 10%, and it's normal for them to be falling by 5% today. If we observe the H1 chart above, the price has fallen to the 50% Fibonacci zone, meaning we are already in a good entry zone.
--> We can do 2 things:
When the price in lower timeframes (M15 chart below) shows us a bullish signal (Bull), make the long entry.
Go long in the zone between the 50%-61.8% Fibonacci (current zone).
--------------------------------------------------------------------
Strategy to follow:
ENTRY: We will open 2 long positions when the price enters the Fibonacci zone (50% - 61.8%) or when a lower timeframe chart gives us the bullish signal (Bull).
POSITION 1 (TP1): We close the first position in the 5,490 zone (+5.8%)
--> Stop Loss at 4,900 (-3.5%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-3.5%) (coinciding with the 4,900 of position 1).
--> We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (5,490).
SETUP CLARIFICATIONS
*** How to know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, we divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by 1 a determined distance. That determined distance is the dynamic Stop Loss.
--> Example: If the dynamic Stop Loss is at -1%, it means that if the price falls by -1%, the position will close. If the price rises, the Stop Loss also rises to maintain that -1% on the upside, therefore, the risk becomes lower and lower until the position becomes profitable. This way, very solid and stable trends in the price can be taken advantage of, maximizing profits
Stocks well off earlier highsWhile Trump's earlier post had lifted sentiment, things have now unraveled again as Trade uncertainty continues to weigh on sentiment. S&P almost flat on the session after failing to break yesterday's high. Let's see if dip buyers emerge later on. For now trading remains quite choppy as reciprocal tariffs are set to go into effect tomorrow, along with those additional tariffs on China.
With trading so choppy, best to trade from level to level and exit on first sign of trouble. Lots of volatility = lots of trading opportunity, but if you are not careful, the choppiness could seriously dent your trading capital.
By Fawad Razaqzada, market analyst with FOREX.com
S&P INTRADAY oversold bounce backUS stock futures dropped and the dollar weakened as concerns grew that the trade war could cause lasting economic damage. This came despite a surge in European and Asian equities, which followed a major rally on Wall Street after President Trump unexpectedly paused most of his tariffs. The move lifted global risk sentiment temporarily, but also isolated China as the primary target of Trump’s trade offensive, limiting Beijing’s options for near-term de-escalation. In response, Chinese leaders are meeting today to consider additional economic stimulus.
Meanwhile, U.S. Treasuries gained as investors sought safety following a volatile session. The Federal Reserve, for its part, signalled it plans to keep interest rates steady, aiming to prevent tariff-driven inflation even if the labour market weakens. Officials have publicly downplayed the need for rate cuts, choosing to prioritize stability over pre-emptive easing.
Key Support and Resistance Levels
Resistance Level 1: 5509
Resistance Level 2: 5660
Resistance Level 3: 5787
Support Level 1: 4815
Support Level 2: 4700
Support Level 3: 4585
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