By: Scott Redler
In this market the only way to stay with a trade is to have the right entry and exit.
I attached the chart of the S&P with the areas that served us well, and what to look at moving forward.
THE PRUDENT ENTRIES
1) The 1040 reversal
2) 1056 was the 50% retracement
3) The push-through the downtrend at 1098
Where are we now?
We hit 1120 this morning (Last Tuesday we were at 1056) below the next major resistance area of 1125-1135. It will be important to see if we can buy back the recent downtrend break, which we call the “retest”. We did sell all our SPY today last price of 111.91 and went short SPY around 112.10, which already have been covered around 111.26 just for a cash flow trade.
I am still long in individual names based on the individual set ups that look good. I will look to buy back SPY if I can around 109.75-110.30 which would be around 1095-1102 S&P. If that holds, that will be your next entry for a macro long in the S&P.
