USA500 trade ideas
S&P 500 Down 3% – Divergence AppearsThe S&P 500 (SPX) continues to show a strong bearish bias and is approaching the 5,300-point level in the short term. Selling pressure remains steady as post-“Liberation Day” uncertainty persists, with markets concerned that the recently announced tariffs could significantly impact the U.S. economic outlook. As a result, this could severely limit the performance of equity indices like the S&P 500.
Bearish Channel
Since February 20, the SPX index has maintained consistent downward momentum, establishing a new bearish channel in the short term. The index has now broken below the key 5,400-point support level. However, the speed of the recent declines may have created an imbalance in market forces, which could pave the way for a bullish correction in upcoming sessions.
Divergence in Indicators
MACD: Both the MACD line and the signal line have shown higher lows in recent trading sessions, which contrasts with the lower lows in the SPX price, indicating a bullish divergence.
RSI: The RSI is showing a similar pattern, with the line forming higher lows while price continues to make lower lows. Additionally, the RSI is now approaching the 30 level, which is typically considered the oversold zone.
These divergence and oversold signals suggest that bearish momentum has accelerated sharply, potentially signaling short-term exhaustion. As the balance between buyers and sellers begins to stabilize, this may be an early indication that upward corrections could occur in the next few sessions.
Key Levels:
5,780 points – Distant resistance: This level aligns with the 200-period moving average. A return to this zone could mark the start of a new bullish phase, posing a threat to the current bearish channel.
5,530 points – Near resistance: This area corresponds to neutral levels seen in recent weeks. It may become a target zone for potential corrective upward moves.
5,388 points – Key support zone: This level matches the lowest prices since September 2024 and is where the price is currently consolidating. If the index breaks decisively below this level, it could lead to a more extended bearish channel in the short term.
By Julian Pineda, CFA – Market Analyst
Trump Goes 'Cynosure' of All Eyes as He Walked Into '1930' RoomThe Striking Parallels Between Trump's 2025 Tariffs and the Smoot-Hawley Tariff Act of 1930
The recent trade policies under President Trump's second administration bear remarkable similarities to the controversial Smoot-Hawley Tariff Act of 1930, both in approach and potential consequences. These parallels offer important historical lessons about protectionist trade policies.
Protectionist Foundations and Scope
Both trade initiatives share fundamentally protectionist motivations aimed at shielding American industries from foreign competition. The Smoot-Hawley Act increased import duties by approximately 20% with the initial goal of protecting struggling U.S. farmers from European agricultural imports. Similarly, Trump's 2025 trade agenda explicitly aims at "backing the United States away from integration with the global economy and steering the country toward becoming more self-contained".
What began as targeted protections in both eras quickly expanded in scope. While Smoot-Hawley initially focused on agricultural protections, industry lobbyists soon demanded similar protections for their sectors. Trump's tariffs have followed a comparable pattern, beginning with specific sectors but rapidly expanding to affect a broad range of imports, with projected tariffs exceeding $1.4 trillion by April 2025—nearly four times the $380 billion imposed during his first administration.
Specific Tariff Examples
The parallel implementation approaches are notable:
Trump imposed a 25% global tariff on steel and aluminum products effective March 12, 2025
Trump raised tariffs on all Chinese imports to 20% on March 4, 2025
Trump imposed 25% tariffs on most Canadian and Mexican goods
Smoot-Hawley increased overall import duties by approximately 20%
Smoot-Hawley raised the average import tax on foreign goods to about 40% (following the Fordney-McCumber Act of 1922)
Global Retaliation and Economic Consequences
Perhaps the most striking similarity is the international backlash. The Smoot-Hawley tariffs triggered retaliatory measures from over 25 countries, dramatically reducing global trade and worsening the Great Depression. Trump's 2025 tariffs have already prompted counter-tariffs from major trading partners:
China responded with 15% tariffs on U.S. coal and liquefied natural gas, and 10% on oil and agricultural machines
Canada implemented 25% tariffs on approximately CA$30 billion of U.S. goods
The European Union announced tariffs on €4.5 billion of U.S. consumer goods and €18 billion of U.S. steel and agricultural products
Expert Opposition
Both policies faced significant opposition from economic experts. More than 1,000 economists urged President Hoover to veto the Smoot-Hawley Act.
Trump's 2025 tariffs? Reaction is coming yet...
Potential Economic Impact
The historical record suggests caution. The Smoot-Hawley Act is "now widely blamed for worsening the severity of the Great Depression in the U.S. and around the world". Trump's "more audacious intervention" similarly carries "potentially seismic consequences for jobs, prices, diplomatic relations and the global trading system".
These striking parallels between trade policies nearly a century apart demonstrate that economic nationalism and retaliatory trade cycles remain persistent challenges in international commerce, with historical lessons that remain relevant today.
Stock market Impact
Just watch the graph..
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Best wishes,
Your Beloved @PandorraResearch Team 😎
SPX On Verge Of A Bearish Decent - Weekly ViewThe S&P 500 is pointing at a long descent downwards based upon simple technical analysis. To further bolster our projection of the market it is no secret the recent trade wars are going to have a major negative impact upon the US & world economy for obvious reasons. With this in mind we can paint a clear picture of where price action is going to head. The question remains where do we enter short?
As we can see in our chart we have broke the current upwards bullish weekly trend line #2. Price action has quickly took a swing downwards to our second trend line #1. In short trend lines simply put are the bottom lows of a bullish market. We can clearly define these trend lines over a long period of time where price action has risen, declined, and then continued its current trend upwards. By marking three bottom or more bottoms lows in a bullish market we can project bottom prices of where price action should never cross below. So what happens when price crosses below these said trend lines? Easy, price action will decrease. This is the case on our chart viewing for trend #2.
As for where price action will continue downwards and stop we can simply view the past history of the market to determine this. Viewing trend line #1 we can see this was the bottom start of the bullish market was 2023 Oct on the weekly chart. Price action has increased aprox. 48 percent with no more than a 8.5 percent in the summer of 2024. That is until our King Donny Trump entered office. From the top of last peak in this bullish cycle SPX has fallen roughly 6.5 percent. Price has clearly broken trend line #2 and is now testing the resistance of price at trend line #1. If price shall break the trend line #2 we will easily fall into our support zone #1. Support zones are nothing more than where price action consolidated sideways for a period of time. These zones are like magnets. Price almost always 'pulls' towards these zones as it is a proven history of the market resistance and support.
The earning moving average(EMA) of the SPX is even more concerning. The red(10 day), blue(21 day), yellow(50day) are the thin lines just below the candles in the chart. The EMA is exactly what it sounds like. The past earning moving average over the past 'x' amount of days. Viewing the EMA data allows you see if the price average is above, on par, or below 'x' amount of past days. This is very important key metric to determine the average market price over a period of time as you can imagine. Even more so important is when price declines below the EMA line. Price going below a 50, 100, or 200 day moving average are levels we want to watch. Currently price action has bounced right off the 50 day EMA. No surprise as this is a very important resistance level day traders will buy only to sell off shortly after. Crossing below the 50 day(yellow line) is known as the 'death cross' for a reason. If price crosses below it we can certainly count on a decline in price action into support zone #1 with easy.
S&P500 6th time in 14 years that this buy signal flashes.S&P500 is sinking under its MA50 (1w) and is headed straight to the next support level, the MA100 (1w).
Last time it touched this level was in October 30th 2023 and that's alone a great buy signal.
It's the RSI (1w) you should be paying attention to as it is approaching the 33.00 level, which since August 2011 it has given 5 buy signals that all touched the MA100 (1w).
Obviously in 2022 we had a bear market, March 2020 was the COVID Black Swan and December 2018 the peak of the U.S.-China trade wars.
Trading Plan:
1. Buy on the MA100 (1w).
Targets:
1. 6500.
Tips:
1. This is a long term trade and it is all about your approach to risk. If you can handle unexpected dips below the MA100 (1w), then you will be greatly rewarded by the end of 2025.
Please like, follow and comment!!
US500: Trend Shift - Potential Break of Key Support LevelsThis analysis focuses on the US500 chart, a representation of the S&P 500 index, a key indicator of the US stock market's performance. The chart displays price action over a 4-hour timeframe, offering a medium-term perspective. The analysis aims to identify potential support levels and assess the likelihood of further bearish movement.
2. Key Findings and Supporting Evidence:
Bearish Trend: The chart clearly shows a prevailing downtrend. The price has been making lower highs and lower lows, signifying strong selling pressure.
Breakdown of Rising Wedge: A rising wedge pattern, often considered a bearish reversal pattern, is visible between March 11th and March 27th. The subsequent breakdown from this wedge has confirmed the bearish sentiment and suggests a continuation of the downtrend.
Potential Support Levels: The chart highlights three potential support levels:
5500 (Current Level): The price is currently hovering around this level. A break below this level could trigger further selling.
5504.2 (First Target): This level is marked as the first potential target for the bearish move.
5441.3 (Second Target): This level represents a more significant support and a deeper potential target.
Trading Strategy Indication: The chart suggests a potential short-selling opportunity, with entry around the current level (5500) and targets at the identified support levels. The stop-loss is placed above the recent high to manage risk.
High Volatility: The sharp price swings and the length of the red (bearish) candles indicate high volatility, suggesting strong momentum behind the downtrend.
3. Relevant Data and Statistics (Inferred):
Timeframe: 4-hour chart.
Index: US500 (S&P 500 equivalent).
Recent High: Approximately 5800.
Recent Low: Approximately 5486.7.
Potential Support Levels: 5500, 5504.2, 5441.3.
4. Discussion of Implications and Potential Future Trends:
Market Sentiment: The breakdown from the rising wedge and the continued bearish momentum suggest a shift in market sentiment towards increased pessimism.
Economic Factors: The downtrend could be influenced by various economic factors, such as rising interest rates, inflation concerns, or geopolitical uncertainties.
Risk Management: Traders should exercise caution and implement proper risk management strategies, including stop-loss orders, due to the high volatility.
Potential for Rebound: While the current trend is bearish, it's essential to acknowledge the possibility of a rebound or consolidation at the support levels.
The Trade War Strikes Back: Market Reeling from Trump’s Tariff MThe markets are not taking Trump’s new round of tariffs lightly.
As the S&P 500 dips sharply, investors are reacting to the growing tension between the U.S. and China over trade policy. The new tariffs have ignited fears of a prolonged trade war, sending shockwaves through tech-heavy sectors and dragging major names like NASDAQ:NVDA , NASDAQ:MSFT , NASDAQ:AAPL , and NASDAQ:AMZN deep into the red.
📉 What we're seeing:
SP500 is breaking recent support with heavy volume.
Tech sector is leading the sell-off, especially chipmakers and global exporters.
Uncertainty is pushing investors toward safety, further increasing volatility.
🧠 Key takeaway: This is more than a dip—it’s policy risk priced in real time. Until there's clarity, traders should prepare for more erratic moves. Short-term sentiment has clearly flipped bearish.
💬 Are you buying the fear or staying out of the storm?
Opening (IRA): SPX May 16th 5130/5160/5850/5880 Iron Condor... for a 10.20 credit.
Comments: High IVR/IV >21. Hesitant to add more long delta here, so going delta neutral in SPX and structuring the trade such that I receive one-third the width of the wings (30) in credit.
Metrics:
Buying Power Effect: 19.80
Max Profit: 10.20
ROC at Max: 51.52%
50% Max: 5.10
ROC at 50% Max: 25.8%
Will generally look to take profit at 50% max, rolling down oppositional side on side test, but won't hesitate to take profit quickly if IV crushes in dramatically post "Liberation Day."
S&P500 - Downtrend - Support Level 5259Based on my chart, SP:SPX showing downtrend with a Strong Support Level of 5259. If it fails to hold this level, I won't be surprised to see SP:SPX at 4759.
Considering the factors Technical (Indicators showing bearish trend) & Fundamental (Tariffs, earnings, Fed's negative data etc.)
Trade War PerspectiveSure, tune in to your favorite youtube finance doomer or the news, and it will sound like the end of the world has arrived.
I personally feel like this tariff crisis is cover to air out all the dirty laundry that's been hidden the last few years. The AI bubble, the stimmy repayment, the imaginary gold, the "forgot how to grow economy" (credit that last one to Eurodollar University), etc etc.
Take a look at this chart. If this is "the end" we have BARELY begun the descent. These types of corrections happen routinely. The point is, don't panic. STICK TO YOUR STRATEGY and don't get emotional.
Good luck out there. Don't get flushed down the tariff toilet.
Strong Buying Zone with Confident The Green 4h Zone Acts as Strong Buying Zone.
The Blue Zone POC/IC (Point Of Interest or Institutional Candle) is weak Support now since it been tested before.
The Fresh Zone is the Green 4h which acts as Decent Support Zone.
We have two Scenarios indicating Buyers step in Strongly Within Green Buying Zone:
Scenarios One: strong buying volume reversal Candle.
Scenarios Two: Fake Break-Out of green Buying Zone.
Both indicate Buyers Stepping in strongly.
Once One Showed Up a safe entry would be 50% Fibo from the buying Candle at 1h TF.
Regards,
Take care.
3/4/25 Trump Reciprocal Tariffs
Yesterday's candlestick opened lower but reversed to close as a big bull bar in its upper half with a prominent tail above.
However, the market traded significantly lower after the market closed. The market will open lower than the March 13 low today.
Again, the bulls hope buyers are below the gap down, similar to March 31st and yesterday April 2nd.
They want any follow-through selling to be limited, and the market to trade up after that.
The bears hope to get follow-through selling after a brief pullback. They want the market to close near its low.
Usually, when the market is opening significantly lower, which means that there are a lot of sell orders at the open.
The market makers have to quote a price they are willing to buy for the stocks that they are trading. Usually, that price is near the day's low.
So, at the open, if you are buying stocks that are gapping down, you are buying with the market maker.
After the market opens, if there is no fresh selling, the market may then slowly float up, letting the market maker slowly clear off their position (remember, they bought at the open, buying when everyone has put an order to sell at the open).
However, if there is fresh selling, the market then may continue to sell off after a brief pullback. If this is the case, then it can be a bearish day.
The reason is that the market maker has been caught long at the open, and the fresh selling continues to push prices past their entry.
The next price they would want to buy would be much lower. So if there are fresh large selling orders in the respective stocks after the market opens, the market makers would bid a lot lower so that they are not run over by a freight train.
For today, traders will see if buyers will buy the gap down open like they did on March 31st and April 2nd.
Or will the market form a brief pullback, and then continue to selloff into the close? If this is the case, the market may not be in a good place moving forward.
$SPX - Top of the MountainSPX is once again, since its uptrend began on 11/06/2023, breaking below the 3-month simple moving average and now also the Monthly Heiken Ashi average (black stepped line).
This time, it seems to have the conditions to start its descent from the mountain and confirm that we reached the top on 02/18/2025.
Looking at the vast majority of stocks in today’s pre-market, this appears to be the scenario.
And this impacts my recent positions. In this scenario, it will seek the 1-year simple moving average, where it should make a pullback (HH or LH?).
Time for caution and to avoid new long entries.
Is 5,700 the New 6,000?The S&P 500 has struggled recently, and some traders may see risk of further downside.
The first pattern on today’s chart is the three-day jump above 5,700 early last week. The move peaked around the January low of 5,773. It also represented a false breakout above the November low of 5,696.50.
In other words, two former support levels have emerged as new resistance.
It’s also reminiscent of the price action in January and February, when failure to hold 6,000 triggered selling.
Next, last week’s high occurred at the 200-day simple moving average. That may suggest the longer-term uptrend has ended.
Third, the 8-day exponential moving average (EMA) has remained below the 21-day EMA. That may indicate that a shorter-term downtrend has begun.
Finally, given the weakening momentum, traders may start eyeing longer-term levels for potential support. One potential spot could be the September low of 5,403, followed by the August trough of 5,119.
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S&P INTRADAY bearish below 5636President Donald Trump imposed the highest U.S. tariffs in a century, aiming to reshape the global economy. This move triggered threats of retaliation and a sharp market selloff worldwide. Stock markets reacted quickly and negatively. U.S. equity futures dropped as investors worried about corporate earnings. European and Asian stocks also declined. The dollar fell to a five-month low, while investors sought safety in Treasury bonds, and the yen strengthened.
Key Support and Resistance Levels
Resistance Level 1: 5636
Resistance Level 2: 5713
Resistance Level 3: 5790
Support Level 1: 5413
Support Level 2: 5262
Support Level 3: 5200
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