Level Planning for Current SP500 into December

What levels and targets are important for traders on the S&P 500?

Let’s update our charts and take a closer look:

With the exception of the late 2015 Collapse and Instant Recovery, price has remained trapped within the “Great Rectangle of 2015” between 2,040 and 2,120.

The Midpoint Magnet Level (yellow) of this Great Rectangle is 2,080.

That’s the dominant pattern or levels with which to plan your trading.

Price recently rallied toward the 2,100 level but failed to break through, resulting in another fall lower toward the current 2,060 level.

Note the rising 50 day EMA near 2,055 (where we are now) and the 20 day EMA just under 2,080’s Midpoint.

Keep these levels in mind as price trades within the Rectangle Range of 2015.

Here’s our Weekly Perspective:

We note the importance of the 2,100 level and how little time price has spent above this key target.

During November and December when price returned to this pivot, price has remained under resistance.

Any breakout higher above 2,100 would be a strong bullish catalyst but it hasn’t happened just yet.

In the meantime, continue focusing on the Rectangle Range (Magnet) along with the rising 20 week EMA at 2,055.

Any breakdown under 2,040 sets in motion a movement lower toward 2,000 or even 1,950’s region.

Focus on the current “Rectangle Range” and play any sudden breakout should it occur.

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).