With the S&P 500 bounce up off support as expected, what levels are we watching for current trades?
Let’s simply take a look:
As planned in the Daily and Weekly Strategy Report for members, we expected another bounce or rally “up away from” the 1,825 pivot as shown above.
Positive divergences appeared at the key “spike-reversal” pivot target and Friday – along with Monday’s holiday action – saw the expected bounce off our support pivot.
This morning price achieved our initial target (T1) into the falling 20 day EMA at 1,890.
We’re focusing on this level as a “make or break” short-term pivot.
We’ll strongly favor bullish trades on a breakout and short-squeeze higher IF price is above 1,900.
Otherwise, 1,890 is our reference pivot target and we favor bearish trades underneath this pivot.
Whatever other strategies you’re using, focus on the 1,890 level and plan the next swing accordingly.
For more daily updates from Corey, visit his blog at Afraid to Trade.com.