S&P 500 Technical Analysis Review
Today I am looking at the S&P 500 using my technical analysis from my trading setups. The chart being used is the 15-minute chart. The setup being used is the Lightning Trade set up the S&P 500 and for the bonus in the video, Caterpillar (CAT).
The circles are the pivot points being used. As you can see price broke below 2,685.75 which initiated the Lightning Trade setup. Price never went down and hit the 127% Fibonacci Extension level to end the trade. It continued to retrace up and up. Once the S&P 500 hit 2737.75 it moved the stop just above the 50% Fibonacci retracement level.
The pink line is where the exit is currently located. With the setup the way it is now I am bearish on the S&P 500 for the 15-minute chart. Price could definitely go up from here some more but eventually, it will retrace back to around 2,713. It may not be today or tomorrow but it will eventually get to that area. Or it could be tomorrow. The timing isn’t what I am looking for.
What I am looking for is the price to move up (or down) a lot without a retracement so that it creates a very favorable reward scenario. On the 15-minute chart of the S&P 500, the price is currently at that level. So until this setup is complete I am bearish on the S&P 500.
Video for the S&P 500 and Caterpillar (CAT)
Here is the video where I talk more in depth about the technical analysis of the S&P 500 for the 15-minute chart. As a bonus, I am going over Caterpillar (CAT) because it has provided a very nice setup to the long side. The chart used will be the hourly chart.
Recap
So that is that. For the S&P 500, I am bearish on for the 15-minute chart. For Caterpillar (CAT) I am bullish on for the 1-hour chart. Price could continue the other way for both but it will eventually reach the levels of just above/below the 50% Fibonacci retracement area.
This is how I trade the majority of my stocks and Forex pairs. The Lightning Trade is my favorite setup. The trick is to remain patient. Wait for price to enter “free trade” territory and to scale in more if the price keeps going the opposite way. That is how I maximize my profits.
If you have any stocks, forex, Futures, or cryptos you would like for me to review then let me know and I will be glad to do so.
All views expressed are my own opinion and should not be taken as financial advice. Use your own judgment. This is how I trade and the setups I look for. In both the S&P 500 and Caterpillar (CAT) I do not have plans to take a position in the next 24-48 hours.
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