Good morning traders.
As I just posted in the Slack Channel markets remain poised for moves....but nothing just yet.
Let's first start with the S&P's.
-
S&P 500: bullish....but will require patience. The price action off the August 29th highs is corrective and complex. Perhaps a "leading wedge" or "diagonal triangle"? Regardless, to me it is corrective and that tells us all we need to know. What remains unclear at this point is where prices will find support and build the steam to move higher.
Wave (2) corrections will typically retrace 61.8% the length of Wave (1). So, in this case, we have only retraced 23.6% of the move...leaving 2778 a distinct possibility.
A couple of notes regarding the chart below:
-
GREEN shaded area represents the Fibonacci Support Zone (FSZ) for the Wave (2) retracement
-
BLUE shaded area represents the Fibonacci Support Zone (FSZ) for the recent move higher off the August 15th lows
Bottom line....patience. Some clients, myself included, should consider slowly scaling into long positions via the futures and/or SPY or PDP. Rather than trying to pinpoint the exact low, nearly impossible, we have our general range to work with. Keep the position size modest. Once prices gain traction and begin to turn higher in an impulsive manner, would then consider adding to round out the position.
For now, we only have a Dec 21 288/310 Call Spread on that was initiated last week at $7.28, last traded $6.92
To learn more about Aspen Trading Group and to download "The List of the best trading resources David Floyd recommends", click here
Aspen Trading Group´s FX Commentary, including any content or information contained within it or Aspen Trading Group´s web site, any site-related service, is provided “as is”, with all faults, with no representations or warranties of any kind, either expressed or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, and noninfringement. You assume total responsibility and risk for your use of Aspen Trading Group´s commentary/website, site-related services, and hyperlinked websites.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.