The Stock Market (SPX) Will Also RecoverGreat news my dear friends, reader and followers, truly great news.
The S&P 500 Index (SPX) is now reversing after challenging a strong support level. This level is the 0.618 Fib. retracement for the bullish wave that started after the October 2023 market low. A strong bounce is visible as soon as this level was hit.
The correction is a classic ABC and the C wave is very steep. When a move is really strong, great force, it can't last that long. So the drop happened all at once, fast, and this means a fast end as well as a strong reversal, but the reversal will not be the same.
We are more likely than not to experience a long drawn out recovery, higher highs and higher lows long-term. Higher prices next.
This is the main support level, 0.618 around 4885. If this level breaks, the next strong support sits at 4540. We are going up.
It is not only Bitcoin and the Altcoins, the stock market will also grow.
The correction is over.
Total drop amounts to a little more than 21%.
This is huge and more than enough.
The bears are satisfied. The bears are done. A bearish wave is followed by a bullish wave.
Short bearish action, long bullish action.
Thank you for reading.
Namaste.
USA500 trade ideas
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.
SPX: Roller Coaster Fest. Looking for a possible short?Not FA*
A lot of set ups looking like flags. Missed the move up but caught puts today for good profit. Or decent profit. I have yet to conquer on how NOT to sell too early? Anyone have any tips?
Set up I’m seeing right now (SPY/SPX): Looks to be flagging.
Green Ray for a short entry
Overall sentiment still feels very bearish. Trump seemed to postpone the tariffs to prevent this market from tanking into near *recession* touches but some say it was a manipulative swing?
So thinking we sell off Friday - as China tariff deal still yet to solidify. A lot of uncertainty overall.
Also on the 1M, the set up looks like a bear flag.
Let me know what you guys think and any insight is welcome! Still new to TA and really wanting to get better at understanding charts/levels. Goal is to be consistent in trading and profitable, very profitable.
GLHF
When is the party over?Inflation ticking back up. Unemployment increasing. Dollar increasing. Geopolitical turmoil. Contentious elections. And yet the market continues to grind up. But when will the music stop? When is the party over?
I'm not making a call to mark the top here but this is setting up for a giant fall. We could continue to grind up to 6000 point, there's no doubt that bulls remain in control. However, the strength of the move up is weak. History doesn't repeat but it often rhymes. Looking back at the historical data, bearish divergences on the Weekly always result in a large pullback.
I am expecting a pull back soon. I do believe a large correction is brewing and I don't want to be caught on the wrong side of the trade.
What am I doing about it? I still think the path of least resistance is to the upside, bulls remain control. So I am using trailing stop losses, taking profits on many of my positions. And looking to open shorts upon weakness. Waiting for confirmation of my bias, especially with a very important couple of weeks of earnings.
Stay tuned, manage your risk and don't let greed get the better of you!
Not financial advice.
What are Tariffs? How They Work and Why They Matter to You?For centuries, tariffs have played a crucial role in global trade, safeguarding domestic industries, shaping international relations, and influencing economic policies. While they often dominate headlines during trade wars and economic policy debates, many people still don’t fully understand what tariffs are, why they are used, and how they impact the economy.
This comprehensive guide covers:
⦿ What tariffs are and how they work
⦿ Different types of tariffs
⦿ Why governments impose tariffs
⦿ The economic, political, and social effects of tariffs.
⦿ Historical and modern examples
⦿ The debate between protectionism and free trade
⦿ Tariffs in different economic systems
⦿ The future of tariffs in a globalized world
By the end of this article, you’ll have a decent understanding of tariffs and their role in the global economy.
🤔 What Are Tariffs?
A tariff is a tax imposed by a government on imported goods and services. The primary purpose of tariffs is to increase the cost of foreign products, making domestically produced goods more attractive to consumers. This serves several economic and political functions, such as protecting domestic industries, generating government revenue, and addressing trade imbalances.
👍 How Do Tariffs Work?
A government sets a tariff rate on imported goods (e.g., 25% on foreign cars).
Importers must pay this tax when bringing goods into the country.
This increases the cost of imported goods, enhancing the competitiveness of domestic alternatives.
Domestic industries benefit from reduced foreign competition.
The government collects revenue from the tariff.
🦸♂ Who Pays the Tariff?
Importers: These businesses or individuals directly pay the tariff when they bring goods into the country. This increases their costs.
Businesses: Since importers face higher costs, businesses that rely on imported goods often pass these costs onto consumers by increasing prices.
Consumers: Ultimately, the general public bears the cost as they pay higher prices for goods affected by tariffs.
🔎 Types of Tariffs
Governments employ various tariffs depending on their economic goals and trade policies. Some of these are:
1️⃣ Ad Valorem Tariffs
An ad valorem tariff is a percentage-based tariff calculated on the value of the imported goods. The tax amount increases or decreases with the price of the product.
Example: A 10% tariff on imported TVs means a $1,000 TV incurs a $100 tariff.
Usage: Commonly used for luxury goods, automobiles, and consumer electronics.
2️⃣ Specific Tariffs
A specific tariff is a fixed fee charged per unit of imported goods, regardless of price.
Example: $3 per barrel of imported oil.
Usage: Often used for commodities like oil, wheat, and alcohol.
3️⃣ Compound Tariffs
A compound tariff includes both a percentage-based tax (Ad valorem) and a fixed fee on imports (Specific). This means importers pay a fixed fee per unit as well as a percentage of the item’s value.
Example: A 5% tax plus $2 per imported cheese wheel.
Usage: Applied to goods where both quantity and value affect the market, such as food products and industrial materials.
4️⃣ Tariff-Rate Quotas (TRQs)
A TRQ allows a limited quantity of an imported good to enter at a lower tariff rate. After the quota is reached, extra imports are taxed at a higher rate.
Example: One of the most well-known examples of a TRQ is the U.S. Sugar Tariff-Rate Quota. The United States allows a certain quantity of sugar to be imported each year at a lower tariff rate. Any sugar imports within the quota limit are subject to a low tariff (e.g., 5%).
However, once the quota is exceeded, any additional sugar imports face a much higher tariff (e.g., 20%). This system ensures that domestic sugar producers remain competitive while still allowing controlled imports to meet demand.
Another example is the European Union's TRQ on Beef Imports. The EU permits a specific amount of high-quality beef imports (e.g., from the U.S. and Canada) at a lower tariff. Once this quota is filled, any additional beef imports are taxed at a significantly higher rate. This policy helps protect EU cattle farmers while maintaining trade agreements with international suppliers.
5️⃣ Protective Tariffs
A protective tariff helps local industries by making imported goods more costly, reducing foreign competition.
Example: The U.S. imposed a 25% tariff on Chinese steel to protect domestic steel manufacturers.
Usage: Commonly used in industries facing strong foreign competition, such as steel, automotive, and textiles.
6️⃣ Revenue Tariffs
A revenue tariff is mainly designed to raise money for the government, not to shield local industries.
Example: In the 19th century, tariffs were the main source of revenue for the U.S. government before income taxes were introduced.
Usage: Often applied to goods that do not have strong domestic competition but are widely consumed, such as alcohol and tobacco.
❓ Why Do Governments Impose Tariffs?
1️⃣ Protecting Domestic Industries
Tariffs shield local businesses from cheaper foreign competitors, helping domestic industries grow.
Example: U.S. steel tariffs in 2018 benefited domestic steel manufacturers.
2️⃣ Generating Government Revenue
Before modern taxation systems, tariffs were a key source of revenue for governments.
Example: In the 1800s, tariffs accounted for 90% of U.S. federal revenue.
3️⃣ National Security Concerns
Some industries, like defense and technology, are crucial for national security, and governments impose tariffs to reduce reliance on foreign suppliers.
Example: The U.S. limits imports of rare earth minerals to ensure a domestic supply chain for defense technologies.
4️⃣ Retaliation in Trade Wars
Countries impose tariffs to address unfair trade practices or economic conflicts.
For instance, during the trade war between the United States and China, both countries imposed taxes on each other's goods
5️⃣ Preventing Dumping
Dumping occurs when a country exports goods at below-market prices to eliminate competition.
Example: The U.S. imposed tariffs on Chinese solar panels due to concerns about dumping.
⚖️ Pros and Cons of Tariffs
Pros
✅ Protects local jobs and industries
✅ Encourages domestic production
✅ Generates government revenue
✅ Enhances national security by reducing reliance on foreign goods
Cons
❌ Increases prices for consumers
❌ Can lead to trade wars and economic retaliation
❌ Encourages inefficiency in domestic industries
❌ Disrupts global supply chains
📕 Historical and Modern Examples of Tariffs
1. The Smoot-Hawley Tariff Act (1930)
The U.S. imposed tariffs on over 20k imported goods.
Result: Other countries retaliated, global trade dropped by 66%, and the Great Depression worsened.
2. Trump’s Tariffs on China (2018-2020)
The United States levied tariffs on $360 billion worth of Chinese goods.
China retaliated, affecting U.S. agriculture exports.
Result: Some U.S. industries benefited, but consumers faced higher prices.
3. The European Union’s Tariffs on U.S. Goods (2021)
The EU imposed tariffs on American whiskey, motorcycles, and jeans in response to U.S. steel tariffs.
Result: Brands like Harley-Davidson saw reduced sales in Europe.
⚙️ Tariffs vs. Free Trade: The Big Debate
The debate between tariffs and free trade is a fundamental discussion in global economics and trade policy. This debate revolves around whether governments should impose tariffs (taxes on imported goods) or embrace free trade (minimal to no restrictions on imports and exports).
◉ Free Trade (No Tariffs)
Free trade is the unrestricted movement of goods and services across borders without tariffs or other trade barriers. Advocates argue that it fosters economic efficiency and global cooperation.
✅✅ Advantages of Free Trade
Lower Prices for Consumers – Without tariffs, imported goods are cheaper, leading to more affordable products.
Increased Economic Growth – When countries trade freely, they specialize in what they do best, leading to higher productivity and economic expansion.
More Competition = Better Products – Companies must compete on quality and innovation rather than relying on government protection.
Stronger Global Relations – Open markets encourage cooperation between nations, reducing the risk of economic conflicts.
Access to More Goods and Services – Consumers enjoy a greater variety of products at lower costs.
❌❌ Disadvantages of Free Trade
Job Losses in Unprotected Industries – Domestic industries that can't compete with cheaper imports may shrink or shut down.
Dependence on Foreign Suppliers – A country may become overly reliant on other nations for essential goods (e.g., medical supplies, electronics).
Potential Trade Deficits – Countries that import more than they export may struggle with imbalances in trade.
◉ Protectionism (Using Tariffs)
Protectionism refers to economic policies that restrict imports through tariffs, quotas, or other barriers to shield domestic industries from foreign competition.
✅✅ Advantages of Tariffs
Protects Local Jobs and Industries – Domestic businesses have a better chance to compete without being undercut by cheaper imports.
Reduces Dependence on Foreign Competitors – A country can maintain its own manufacturing and production capabilities, especially in critical industries like steel, energy, and food.
Generates Government Revenue – Tariffs provide a source of income for governments, which can be reinvested in public services.
Prevents Dumping – Tariffs discourage foreign companies from flooding the market with artificially cheap goods to destroy domestic competition.
❌❌ Disadvantages of Tariffs
Higher Prices for Consumers – Since imported goods are taxed, businesses pass the extra costs to customers.
Risk of Trade Wars – When one country imposes tariffs, others retaliate, leading to economic conflicts that hurt all parties involved.
Encourages Inefficiency – Without foreign competition, domestic companies may become complacent and innovate less.
Disrupts Global Supply Chains – Many industries rely on international suppliers; tariffs can increase production costs and delays.
❇️ The Future of Tariffs in a Globalized World
As economies become more interconnected, tariffs are often seen as barriers to global trade.
Emerging industries, such as digital services, face new trade policy challenges that traditional tariffs do not cover.
With globalization, many nations favor free trade agreements (FTAs) like USMCA and the EU single market to reduce trade barriers.
Climate-related tariffs, such as carbon border taxes, may become more common as nations try to incentivize environmentally friendly trade practices.
📌 Closing Thoughts
Tariffs remain one of the most powerful - and controversial - tools in economic policy. Like a thermostat for trade, they can be adjusted to protect domestic industries, but risk overheating the economy with unintended consequences.
History shows that while tariffs can provide temporary relief for specific sectors, they often create ripple effects across the entire economy. The steel tariffs of 2018 helped some American mills reopen, but made cars and appliances more expensive for everyone.
Neither free trade nor tariffs are perfect solutions. A balanced approach, where tariffs are selectively used for strategic industries while promoting open markets in others, is often the best path.
Each country must decide based on its economic strengths and priorities. For example, developed nations might push for free trade, while developing nations use tariffs to protect growing industries.
As trade policies continue evolving, understanding tariffs gives citizens and businesses crucial insight into how globalization affects prices, jobs, and economic security. The debate isn't about whether tariffs are "good" or "bad," but rather when and how they should be used strategically.
What are your thoughts on the ongoing U.S. tariff war? Share your opinions in the comments! 📩
SPX - Have we bottomed ?History often repeats itself. SPX just bounced off a key level the 2022 high and the long-term channel support which has historically triggered strong reversals (red circles), and we’re seeing the same setup again. MACD is deep in bearish territory but showing signs of flattening. Volume is elevated — likely signaling a washout or institutional accumulation.
If bulls defend this level, a bounce toward the 0.5 and 0.382 Fibs (5,493 – 5,649) is on the cards. Break below 5,114 and it’s lights out again — signalling that this bounce perhaps may just have been a gap and bull trap ? I’m neutral and acting as per technical hints, waiting for signs of confirmation. Although Risk/reward is solid here if momentum shifts.
Would love to hear any thoughts or different opinions. All the best as always !
S&P 500 - Analysis and Rebound levels! 4/7/2025S&P 500 just pulled off a slick rebound at 4835.04 - Let's hope it's legit. A close above the 50-week SMA keeps momentum alive. If not, eyes on the next landing zones at 4754.17 and 4699.43. No panic! Don’t let the noise rattle your game plan! 😎
#SP500 AMEX:SPY SP:SPX
US500 - Long-Term Long!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈US500 has been overall bullish trading within the rising channel marked in blue.
Moreover, it is retesting its previous all-time high at $4,800 and round number $5,000.
🏹 Thus, the highlighted blue circle is a strong area to look for buy setups as it is the intersection of previous ATH and lower blue trendline acting as a non-horizontal support.
📚 As per my trading style:
As #US500 approaches the blue circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Update on my thoughts on long term fibs thesis I wanted to give an overview update for those who've followed my macro thesis over the years.
I've used various different things to support it but when it's come to my thoughts as to when the idea has failed I've always thought the only thing I really use for that is the big 4.23' of the 2008 crash.
Since 2019 I've used the thesis big fib levels will foretell big moves in SPX, and it's worked really well.
Inside the theory of trend formation through a fib swing I have been using, the 4.23 is the final boss. It's the biggest most important swing and at it everything is high stakes.
4.23 rejections can lead to 1.27 retracements. In the context of this chart, that would be a depression style move.
When this area was first hit in 2022 it made the high there. One of my known for 4.23's is they'll often bluff and then have some sort of spike out.
So if the 4.23 is actionable, we'd be in the end game now. Trying to work out exactly how much spike tolerance is very difficult but in the bear thesis this trading above the 4.23 should turn into a strong rejection. I'm talking conditions where weekly charts look like the 4 hour charts did in the original 10% break.
What would happen on a 4.23 reversal would be unspeakably bad with the size of these swings, and this 4.23 principle can be found time and time again marking the end of extreme moves (both up moves and crashes).
That's a concerning thing. If there's even a 5% chance of that happening I feel I have to think about it. Based on the odds of the fibs, the odds would be higher.
It'd be fair to say thinking a fib can affect such big things is irrational. But it would be honest to accept to ignore the fact they actually have right in front of us is all the more irrational.
But the 4.23 might break!
It's difficult for me to tell you the specific price at which I'd consider the 4.23 to have been broken but I can tell you the idea that it might break is something I deeply consider- because if that is going to happen, my bear thesis would never be correct inside a workable time/price move. This isn't a "Right eventually" sort of thing. The patterns have expectations.
If the 4.23 is not a top, then the plan totally changes. Because I know from my intraday / week trading that I really love to be fading 4.23s and 4.23 spikes regularly but if and when they fail the most exceptional of things happen. These are not all that notable intraday to anyone other than levels traders, but what if the same concept scaled up - I wondered.
I wondered this a while ago and noticed it was something I'd never really checked. As it happened, all the 4.23s I looked at in indices reversed.
Initially I found it tricky to find them but then I noticed the highest probability place to find them was heading into bubbles.
And this makes me super wary of the fact my bear thesis could be spectacularly wrong. Because around about this zone Nasdaq was getting into a 4.23 - and this looked quite bubble-like.
If I'd seen this in real time in the 4.23, I'd have thought that worth a fade.
1998. The Nasdaq did not make a high in 1998!
1998 was in fact a rather bad time to have a persistent bear thesis.
But you could have made money.
For a while there was a flux. During this you could have made some money. You'd just have to know when to stop doing that.
Inside a thesis such as this, when there is a drop you always have to consider we might be in a spot something like this.
From this move Nasdaq would go into a rally that literally changes the perspective of the chart. As you click through bar by bar the previous crash bars become hard to see.
Nothing but up.
Then sideways.
Nothing but up.
Then we're inside of the topping zone.
If you didn't decide before the fact, where do you drop the bear thesis there? It's tough. Because the rally section would seem like a blow off. Then we go sideways. Which feels like the steam has ran out. Then we go into the real blow off. Where to close your short would be handled for you if you didn't - but it's hard to know when you'd flip bull there.
For me, at least. Because I'd want to buy a crash move. And there really are not all that many of them. My style of trading is optimised for trading reversals (either of corrections or absolute) and steady and persistent pullback-less trends are trickier for me. I need to have a really good idea of where I'd want to switch to that style and my failure conditions (because all that momentum trading with no stops stuff isn't for me - I could not sleep at night - being someone who's benefited from so many major trend reversals and seeing how fast they happen).
Looking through different examples of 4.23 breaks (which really are mostly found before bubble like moves or crashes if inverted) I have come to conclusion that the best thing to have done would have probably been to buy the low of the last crash before the bubble.
Just buy the low before the bubble. That's it. Thanks for reading!
Of course, on a more practical level - we actually have to try to do that. Now...if the break was coming, we'd maybe actually be AT that spot.
I think to give the bearish 4.23 thesis its full fair chance we have to accept some sort of stop running above this recent high.
Stuff like that is totally fail game. Even something a bit more spikey would be fine if it rejected. But if we trend up here, break highs and then continue to trend up, I really do think that would be the conditions where I would stop generating bear short levels. I'd switch my methods to generating bear risk areas but main using these for bullish trail/breakout decisions.
I first came into indices in 2019 with my bear thesis on SPX. Which was spectacularly half right. But I'd forecast a two leg crash. Fortunately enough for me, when the high was broken I became disinterested in SPX and went back to Forex. Only setting an alert for the next big level, which triggered 2021. This is when I setup the "HoleyProfit" username.
This period of time has been the best time to be a bear inside of my trading lifetime. But I believe if we're not somewhere deep inside the end game for this bull market we could head into conditions where if you trade flawlessly as a bear you can perhaps scrape breakeven eventually. Which are not good times to be a bear. They'd be good times to be a bull.
If I don't think about this, we could have a move that looks like an obvious blow off in SPX to me.
And ends up looking like this.
Which I don't want to be short into. And realistically I'm not. I'd hit stops well before any of that madness affected me. But I don't want anyone who's followed my ideas and seen these having the big previous successes thinking it's a slam dunk sort of thing. I do believe if my bear thesis failed it would be spectacularly.
I believe we're in a bubble. Whether we're late or mid bubble I am open minded to.
Being mid bubble and being aware of it would be INCREDIBLE. Some people think I am determined to be a bear just because I want to be. I'd be happy with massively awesome markets. A trend one way or the other pay just as much to me. It's better to make money in conditions your broker and bank are not going out of business.
I really don't mind being bullish. It's just sketchy doing it at major resistance levels with all the other weird confluences (like interest rate patterns etc).
We are somewhat close to crux in this thesis. Hopefully you can easily understand how it's not practical to put a price on specifically but I do want to note that while I have plans to short different bull trap levels / spike outs on this rally - we are getting the point where my net thesis may be proven wrong on the large reversal.
If that happens, my option and style will be become polar opposite. For me to continue to be bearish above the 4.23 would be me just wandering off into a jungle of random for trying to have an overall plan. And in fact, for me to not switch my bias from bear to hyper bullish on a 4.23 would be intellectually dishonest and directly fading the edges that the original idea bet on.
Markets may make big reversals at major resistances, but if they break- can be much different.
I wanted to be clear and thorough on this while while are still generally low. While I've discussed some different bear plans into a rally, it is also one of my considerations that this rally could end up spelling out the end of my bear thesis if we made new highs and were persistent.
The net bear thesis will be right or wrong inside a specific zone. That zone is big and tricky to define, but it's specific. Specific in the fact that I'm saying we're specifically in that zone.
There's potentially for setups that could take a lot of time to complete, but in terms of the zone and conditions what's accepted is getting narrower and narrower.
It is entirely placeable within the next 6 months my entire macro swing bias will have changed.
Or this might all just be the bull trap taking. We'll see how it goes.
SP500 may have already hit the low In the video I have shown an interesting relationship between past crashes on SP500 which shows we might have already hit the low are very close to it before we start next major rally.
Note: Even though the relationship I have shown holds true so far doesn't Guarantee it will in future as well as all patterns no matter how convincing get invalidated at some point.
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 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
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Trading with Liquidity Sentiment IndicatorsJust a short introduction to trading with our indicators. I can't emphasise enough that you need to have at least 6 securities/tickers to click through to find the liquidity that fits the price action. At different times of day, different tickers are used by market makers to lay off deltas for hedging, this makes up the largest volumes in the markets, as well as the securities/tickers that you and others are trading. All these securities prices are moved around by the index they are a component of and the VIX which is made up of 30 day(dte) put IV. I will post more regularly this week reading live trading using the indicators.
SPX potentials for resistance & lowsI do dowsing & that's where I get my information from. I am expecting a move up tomorrow and then a high Wed./Thurs. with a reversal back down.
I've had levels around the 5450 area even since September, as well as dates suggesting a return to prices even lower from around November/December 2023, which if you recall, was the start of this big run up. I'm only showing the more near term idea, because that's what seems more clear.
The areas at the top are likely resistance in the near term. I'm not sure on timing for lows, but suspect something big in June/July.
I have some potentially important dates including this Thursday, as well as April 18th, 23rd, June 2nd and twice I get July 14th as well.
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)
Low Here Would be Consistent with a New High Coming Making a low in the general area in which we trade now would be highly consistent with a bullish trend development.
If this is the low around 5200, then I think it's quite likely we see a new high.
Profits should be locked in on all previous bear entries given.
If the local downtrend breaks here, the bear move is likely over.
Maybe This is all a Big Head and Shoulders.This is feeling suspiciously like honey trapping of the bears and I think there's fair odds we're going to see a strong squeeze starting now and lasting over at least the next couple weeks.
This could easily take us to 5800 or so inside of the head and shoulders setup
S&P500: Trump's 90-day tariff pause just saved the day??S&P500 is having so far a +9.50% rise from today's low as even though Trump announced a 125% raise to China tariffs, he lowered and paused tariffs for 90 days to all countries that contacted the U.S. for negotiation. The 1D technical outlook is about to get neutral (RSI = 42.537, MACD = -181.510, ADX = 39.036) as the rebound is taking place at the HL bottom of the Bullish Megaphone, while the 1W MA200 stayed intact.
A similar Megaphone was last seen during the previous 2018 Trade War and was completed with the COVID crash that started an abnormal rally to new ATH to correct the equally abnormal crash. Needless to say, it was based on quick rate cuts but the situation isn't all that different today. Trump's stance towards negotiating, coupled with highly anticipated rate cuts, can deliver an equally abnormal rally now.
The previous HH of the Bullish Megaphone hit the 2.0 Fibonacci extension. This time if the rally extends to the end of the year, targeting the 1.5 - 1.618 Fibonacci Zone would be considered fair (TP = 6,900).
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S&P 500 Index vs PresidentIn this layout you can see how the S&P has been performed on each presidency.
Presidency terms,
Obama 1st term: after the financial recession, the index was trying to recover and we saw falls from 16 to 21%, market went up 83%.
Obama 2nd term: the index saw falls from 10 to 15%, Market went up 50%.
Trump 1st Term: the index saw falls 3 big times 11, 21 and 34% Market went up 68%.
Biden 1st Term: the index saw falls 27% and 10%, Market went up 55%.
Trump 2nd Term: we are in the 1st fall 21% not sure if it will continue going down.
The price wants to get closer to the 200MA every time
Fibonacci levels, we are on 0.5, we still have 2 more levels down so these 3 levels could be a good entry point 😊