We’re seeing at least a short-term bounce develop off key planning levels for US Stocks.
Let’s pinpoint these levels and craft a trading plan for the bounce or collapse from the new “Make or Breakdown” Pivot Points.
First, take a look at last week’s “Bigger Picture Weekly Chart Price Pivot Levels” to accompany today’s post.
We’ll just focus on the key levels and the trading plan on the departure (swing) from these pivots.
For the S&P 500, it’s the 1,870 level which is the August and September 2015 intervention lows.
At least a third bounce is expected to develop from the 1,880 level (which we may be seeing this morning).
Look to the Weekly Chart Post for downside target levels if the Alternate Thesis triggers and we do not see at least a short-term rally off support (it could forecast a market collapse).
Dow Jones Industrial Average:
For the Dow Jones we’re planning a support pivot rally “up away from” the 16,000 simple reference.
This was the September intervention reversal low and a smaller two-day support level earlier in September.
A minimum up-swing target extends toward the 16,600 pivot as highlighted.
Finally, the NASDAQ:
Though the Tech-heavy NASDAQ slightly broke under its September 2015 reversal low, price rebounded above the critical pivot of 4,500.
A big upside retracement takes price toward 4,750 or even into 4,900 for the next key pivot.
Focus your attention on these levels in all indexes and – as usual – objectively play the departure swing “away from” these levels.
For more daily updates from Corey, visit his blog at Afraid to Trade.com.