Today I’m going to show you how I’m trading the S&P 500 (SPX) in the coming days.
I’ll share where to look for a trade, and some key levels and targets for later this month.
Watch the video below and scroll down for the annotated charts and analysis.
The S&P 500 (SPX) reversed sharply lower today following CPI data out of the US.
The market recently reclaimed the 4,335 to 4,360 region and looked intent on visiting the 4,450 resistance area.
However, today’s price action makes that less certain.
While nothing is confirmed yet, a daily close below 4,360 and particularly 4,335 would confirm a fakeout that could send SPX lower.
One area I’ve had my eye on for months is 4,200.
In fact, that’s been my target for the S&P 500 since the market topped out in August.
There’s a lot of confluence in the 4,200 region, making it an ideal target within the current downtrend.
A close below 4,360 today would flip that level to resistance.
But just keep in mind that the SPX would need to break below 4,335 to really confirm further downside.
One other support to watch closely on the way down is 4,270.
The level served as support in early June and was also a key pivot recently.
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