Inside the Currency Market: SPX V NZD/USD and SPX day and weekly trades

Brian Twomey Brian's Investment

SPX 500 traded its best days last Tuesday at 79 and Thursday at 70 points. NZD/USD traded its best days last Tuesday at 101 pips and 72 pips Friday. While SPX traded 43 pips last Monday, NZD/USD ranged 63 pips. NZD/USD beat SPX Tuesday by 101 Vs 79. Wednesday 71 Vs 53 SPX. Then SPX beat NZD/USD Thursday by 70 Points vs 40 pips. NZD/USD resumed normality Friday by a beat to SPX by 72 vs 45 points for SPX.

SPX Ranged last week 143 points from 4593.62 to 4450.57. This gives us an average right at 29 points which means if trader profits were 29 ish points per day then the average was met to points. NZD/USD traded 212 pips from 0.7033 to 0.6821 or 42 points per day. This 42 points for NZD is a bit high and results from the 101 pip spike on Tuesday.

SPX 143 points is a god send to free money profits as much as 212 pips for NZD/USD.

SPX for the week contains 2 big points: 4497.99 and 4522.25 or 24 points. How close is 4522? I have 4521. Points and pips truly matter because it determines if a vital average will hold or break lower or higher.

NZD/USD big breaks are located at 0.6927 and 0.6856 or 71 pips. Overall, SPX 24 Vs NZD/USD at 71. NZD/USD ranges reveals NZD/USD will continue to beat SPX and not by very much as 42 day trade points will drop as the next trade day ends.

A day trade for any financial instrument is a monster especially to hit entries and targets perfectly. Targets are never the question but entries are the whole keys to profits. A day trade must re factor everyday as every trade day is vastly different to entries and targets.

SPX Day Monday Day Trade

Monday levels 4544.07, 4538.29, 4532.50, 4523.82, 4517.31, 4512.43, 4488.00, 4483.11,4478.23,4471.72,4463.04,4451.47.

Strategy. Long 4463.04 and 4471.72 to target 4532.50 and 4538.29. Short 4538.29 and 4532.50 to target 4504.55. Trades = 69 and 33 points.

Nothing stops SPX from trade to 4544.07 nor is it stopped from trading to 4532.50. The same principle holds for 4451.47.

While the list of levels is long, only 5 numbers apply and exactly as a day trade for currencies.

SPX Weekly Trade

Levels: 4664.93,4646.98,4638.00,4629.03,4575.17,4561.71,4548.24

4485.41,4449.50,4512.34,4503.36,4377.69.

Strategy. Short 4646.98, 4638.00,4629.03 to target 4606.59. Long 4413.59 and 4395.64 to target 4449.50.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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