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SPX expected move for March 4, 2015

Today, we saw SPX retreating from its all-time high level. Surprisingly, it wasn’t economic data which sparked the selling but not so good sales reported by automakers. That’s at least what media are trying to tell us.

On Monday the trading was strong and bullish enough to reverse bearish outlook and my technical indicators shot a bull signal again. But today’s trading makes it a weak bullish trend again. Will the bullish outlook stay or not? We will see tomorrow.

Below is the chart of my expected moves of SPX for tomorrow. The light colored box indicates the low and high level where the market can go. If selling continues the worst case scenario would be that we fall down to 2088 – 2090 level and then we may bounce back up again.

 
SPX expected move
 

I do not expect the market to fall lower below 2088 level tomorrow. Unless selling is reversed in coming days, it may happen that the stock market falls below our bull put spread strike and we will have to roll the trade. But that is still too early to say at this point.

Let’s see what is going to happen tomorrow.
 





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