Adjustment to Pending S&P 500 Trade
Cancelling my sell stop order in the SPX500 (FXCM CFD) following today’s break of Monday’s high. Given the importance of this week from a timing standpoint, I still think the index is vulnerable to a turn lower over the next few days. Key resistance looks to be around 2065/66 as it marks a nice convergence of the 78.6% retracement of the May – February decline and six square root relationships from the year-to-date low. I am moving my stop up a bit to encompass the potential slope symmetry discussed by my colleague Jamie Saettele HERE.
I want to sell the S&P 500 (FXCM CFD) at 2064 with a one day closing stop over 2077. If the trade is triggered, I will be looking to take off half of the position around 2038 and move the stop on the remainder to around cost.