Another Batch of Trading Setups For The SP500 Are Here, Submitted by Chris Vermulen of The Gold And Oil Guy
The past few weeks I have been talking about the SP500 forming a top similar to the January top we saw earlier this year. Well the charts below show exactly what I have been waiting for to unfold and I think the time has come for the market to take a healthy breather before continuing this strong bull market which could last another 12 -24 months before really topping out.
SPY – SP500 ETF Trading Chart
I am showing the SPY etf because that’s a fund most people know and
trade, but this analysis is the same for trading futures like the ES M0
Mini SP500 contract.
You can see the similar price action which formed in January and
what has happened recently. I feel we are about to see a correction
which would last several weeks which is very exciting for us traders.
SPY April Top – SP500 ETF Trading 60 Minute Chart
This chart shows the past few weeks of price action with the market
becoming more volatile with waves of selling and buying. This indicates
exhaustion and generally leads to a market correction or at least some
sideways movement to digest the recent rally before continuing higher.
SPY January Top – SP500 ETF Trading 60 Minute Chart
Take a look at this chart of January….
Very similar price and volume action.
SPY January Sell Off – SP500 ETF Trading 60 Minute Chart
This chart shows the sell off last January and the setups I had when
the market reached extremes generating trades with the underlying down
trend.
SP500 Day Trading & Swing Trading Opportunities:
I hope these charts help you to see how I read the market and what I
am looking for in trade setups. While its easy to see these setups in
hindsight it requires a lot of research and experience in-order to time
these plays in real-time when emotions are flying high and with BNN,
Bloomberg, CNBC and other newsletters all saying different things…
