SPX futures at 1266 are showing signs of weakening momentum.
The index was a buy when key support of 50 SMA in 4 Hr chart was hit. Read Trade Example: Bull Phase Entry points.
The index made a new high after the post at 1276 levels.
Now the index hit the 50 SMA in 4 Hr charts again twice in last 2 days which I view is a bearish sign. This is testing of support levels too fast which indicates selling pressure.
The index did bounced after exhibiting a doji below the support followed next by a bullish candle.
But this time the index is hesitating at the 20 SMA which is the mid band.
Also the bands are contracting with macd having divergence at new tops.
How to trade: Thats the most important question.
I will not short out rightly as the signs are of range not of bearishness. And since the index is in bull phase shorts have a very low winning rate.
Long if the index moves above the current bearish candle and gives a close above the 20 SMA with profits to be booked at 1275 levels OR long at the lower band when there are bullish signs like doji or long lower wick.
The index was a buy when key support of 50 SMA in 4 Hr chart was hit. Read Trade Example: Bull Phase Entry points.
The index made a new high after the post at 1276 levels.
Now the index hit the 50 SMA in 4 Hr charts again twice in last 2 days which I view is a bearish sign. This is testing of support levels too fast which indicates selling pressure.
The index did bounced after exhibiting a doji below the support followed next by a bullish candle.
But this time the index is hesitating at the 20 SMA which is the mid band.
Also the bands are contracting with macd having divergence at new tops.
How to trade: Thats the most important question.
I will not short out rightly as the signs are of range not of bearishness. And since the index is in bull phase shorts have a very low winning rate.
Long if the index moves above the current bearish candle and gives a close above the 20 SMA with profits to be booked at 1275 levels OR long at the lower band when there are bullish signs like doji or long lower wick.
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