The Surprisingly Simple Planning Level for the SP500

Feb 6, 2014: 2:29 PM CST

I’ve referenced this in daily updates recently, but today’s session reminds us of how important the 1,770 level is for the S&P 500.

Let’s strip the charts of all indicators and focus on the simple planning levels for short-term and intraday traders:

S&P 500 SP500 SPX @ES Futures Emini Day Trading Index futures trading

For a broader perspective, please review my prior updates regarding “S&P 500 Level 1,770” here:

Updating the Daily Planning Levels for the S&P 500” (Feb. 3)

S&P 500 Level Planning into 1,770” (Jan 27)

“Respecting the Range While Awaiting a Breakout” (Jan 23)

On the “Double Bottom” reversal up off the critical “Make or Break” Support level of 1,740, price broke the 1,755 midpoint this morning with a gap-up that set in motion today’s intraday trend impulse straight to the 1,770 target.

That’s where we stand currently in the intraday world and we’ll continue to use 1,770 as the overriding strategy level.

Among the other strategies you use to plan your trades, sometimes it’s a good idea to focus on price action itself and the key focal levels traders are watching.

Here’s another viewpoint of the importance of 1,770:

S&P 500 SP500 SPX @ES Futures Emini Day Trading Index futures trading

In general, we’ll look for bullish strategies short-term on an “Open Air” breakout above the 1,770 level (give it a couple of points of “wiggle room” for traps – at the moment, price is trading into 1,772) which could open a play toward 1,800 or the 1,810 region.

Otherwise, a downward move here against 1,770’s resistance opens the path again for 1,755 or even 1,740.

Incorporate these levels into your other strategies/indicators and adapt in real-time as price moves toward or away from these levels.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “The Surprisingly Simple Planning Level for the SP500”

  1. http://tinyurl.com/l8yhtxx Says:

    Thanks for this article!

  2. Friday Feb 21 Midday Check on Market Internals at the Highs | Afraid to Trade.com Blog Says:

    […] additional reference, see the importance of the 1,740 level as I described in the prior update.   It’s also discussed in the “Daily Planning Levels” update as […]