The Current Battle to Hold a Key SP500 Trendline

Jun 8, 2015: 12:00 PM CST

We’re back to the infamous “Will it or Won’t It” break or hold a key rising trendline.

We’re about to see a confirmed breakdown/breakout opportunity..or else another bounce/rally outcome.

Let’s pinpoint the key levels and be clear on our trade planning with respect to this level.

The chart above reveals a wider perspective of the recent creeping uptrend in price and a rising blue trendline connecting the closing and spiking lows through 2015.

Buyers held the market above this level repeatedly, except for a blip in early February.

Range and Volatility have been low, and you can reference these more detailed posts:

“A Quick Way to Measure Volatility.”

Current Low Volatility Environment Forecasting a High Volatility Future

“Quantifying Current Volatility in Dow, S&P 500, and NASDAQ”

Keep the chart above in mind as we drop down to a closer perspective of the planning levels:

This “Zoomed-In” Perspective reveals the four recent spike-reversals up off the rising trendline in 2015.

The simple level on which to focus is the 2,095 to 2,090 zone … and price is currently failing here.

Do reference the yellow highlights – four spike-reversals up off this level.

For objective planning, we’ll be short/bearish biased under 2,080 for a liquidation swing possibly taking price toward the 2,050 rising 200 day SMA.

If buyers intervene again and overtake the sellers, then we’ll play bullishly for a fifth time above 2,090 and especially above 2,100.

These are simple planning parameters but they’re likely to be effective as price moves away from this level.

Afraid to Trade Premium Content and Membership

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

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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).

3 Comments

3 Responses to “The Current Battle to Hold a Key SP500 Trendline”

  1. Sell Swing Market Update and Big Stock Scan June 8 | Afraid to Trade.com Blog Says:

    […] with this morning’s update “The Battle to Hold the S&P 500 Trendline” for more planning […]

  2. visual effects school los angeles Says:

    Again there are very careless. Mum has given me a sister.
    Please tell me anything? I don’t know which movie you visual effects school los angeles want to
    quit the place. We see Sheikh locally making the station visual effects school los angeles a magical stratagem.

  3. Zain Says:

    I always love to follow support levels because this is some
    way that will help us reach towards profits regularly and help us avoid any
    sort of losses, so that’s why we need to focus on this. I am lucky that I have
    got high class broker like OctaFX, it has unbelievable platform in cTrader, it
    is highly upgraded with latest technology been used while there is also advance
    charts that helps further, so really all this helps me in massive way and
    allows to achieve success.