Buyers Defending Key 2,070 and 17,700 Index Levels

Jun 15, 2015: 10:49 AM CST

For the third time recently, buyers rushed in to defend and bounce the market up key inflection levels.

Let’s take a look at the S&P 500 and Dow Jones levels buyers are defending and plan our trades.

We’ll start with the S&P 500:

Early in May and also early in June, buyers stepped in to defend the 2,070 index level, finding it an attractive level to overcome sellers and boost prices higher with intraday reversals.

Today, we’re seeing another possible “bounce/reversal” off this exact same level.

In fact, during the morning portion, we’re seeing a similar candle (bar) as we saw on May 6th.

If we simplify the planning, we’re again looking to play another bullish bounce up off the 2,070 level.

However, no trading plan would be complete without an alternate thesis, and in this case it would be the “Third Time’s a Charm” outcome where the bears break through and trigger a liquidation/sell swing down away from 2,070.

For short-term targeting, the bullish bounce outcome targets the 2,100 level (EMA confluence) while the bearish breakdown outcome sets in motion a downswing toward 2,050.

Let’s update our levels on the Dow Jones which has similar logic:

Like the S&P 500, buyers have rushed to defend a similar level, only it’s the 17,700 level in the Dow.

Similarly, a bullish rally/reversal outcome targets 18,000 once again while a bearish breakdown “this time is different” opens a quick play toward 17,600 or 17,550.

Note these simple levels and adjust accordingly as price moves “away from” these pivot points.

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Corey Rosenbloom, CMT
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2 Responses to “Buyers Defending Key 2,070 and 17,700 Index Levels”

  1. How the Weekly SP500 Chart Helps Our Game Planning | Afraid to Blog Says:

    […] First, start with yesterday’s update post “Buyers Defending Key Dow and S&P 500 Levels.” […]

  2. Mahi Says:

    It’s not long when all the defending will end, so one has to be very careful in deciding, if we don’t make right decision then we could be putting our self into huge risk and that will definitely lead into losing. Now, I am with the greatest brokerage company OctaFX, it’s supporting me in everything I do and that includes allowing me to do scalping, hedging, news trading and even EA system, so it’s just fabulous to work with such broker in this high risk market.