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Futures are doing a little backing and filling this morning, after yesterday’s reversal day.
There is support at 4251 and I would NOT be against starting to build a long position between 4251to 4160.
I would build the position with small entries at pivots and then place a stop at 4100.
It would be a 1.5% risk and the upside target would be between 4450/4600, making the reward close to 5%, depending on the final entry.
The safer trade would be to just watch the potential rally and wait to short once the bulls exhaust themselves.
Your call-as you are the only one who knows your trading tolerance.
For today, the bears need to get prices below 4250 to get momentum going again on the downside.
The bulls need to take out the 4316 for a reaction trade up to the 4350/4378.
I would go crazy looking for an entry on either side.
From a technical view, we could go in any direction and it would fit a profile.
Waiting for exhaustion on either the downside/or upside will work best.
We did see some selling exhaustion yesterday right at the 4200 support which caused a fast move up to the 4300.
Just be patient for now, but if I was forced into a position, I would be looking to buy dips here.
SPX Hourly Technicals
Stochastics: Neutral
Divergences: No Divergences
Resistance Pivots: R1-4300 R2-4317 R3-4344
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