Long S&P500 @ 1043.5

Although we have profited substantially from shorts at 1101 earlier this week, let us not forget our mandate: buy dips! Since March lows of 666 we have consistently made higher highs and higher lows. Today, ahead of 3Q US GDP, the S&P500 is testing ascending support that has been in play since those market lows. Is this reason sufficient for us to effect a long position? In and of itself, no. Consider this however: The EUR/USD, often considered a mirror of global indice health, is also at a key level of support. The stochastics on both charts seem to bottoming out and RSIs both look to turning higher. On this basis, we have executed a sizeable long position at 1043.5 on the S&P500 with a moderate stop loss to compensate for the inevitable noise around the US GDP data. Please note, we would not normally effect a position ahead of such a key figure, howerver, the statistical and technical evidence in favour of our doing so is overwhelming.

Safe trading all!

S&P 500 support at 1054.5?

Here at the flatbook we will action a long position (in line with our 'buy dips' mandate) at 1054.5 with moderately sized stops - 50 pips. We anticipate a bounce from this level due to the considerable support as illustrated on the d1 chart below.

Safe trading all!

Short-term S&P500 support

Our target for our short position today of 1090.0, as illustrated below, was hit triggering our limit orders. We are considering effecting a speculative long position at the ascending support (1088).

Safe trading all!

Are we at critical point for S&P 500?

After several months of upside momentum are we now at a critical juncture in the Bulls vs Bears battle? Well, here at the flatbook we certainly think so. Take a peak at the charts below. Here we see price action encroaching upon previously tested, descending resistance. That we see this resistance coming into play almost simultaneously, on more than one global market index gives this setup additional credence. The stochastic on all three charts is also looking very 'toppy'. We will effect a short position on the S&P500 at no lower than 1001 (as this is where the chart meets our resistance), with tight stop losses.
Worthy of note, is that this trade is extremely counter trend. With better than expected results popping up left, right and centre, of which Apple is the most recent (profits up 47%) the mandate for profitable trading over the weeks/months past, has been to buy dips. The technicals pertaining to our short position however, are too extensive for us to not take the trade. We are techincal analysts afterall and not fundamental analysts.

Safe trading all!