Ahoy there Trader! ⚓️
It’s Phil…
The evolution of SPX’s price action continues to keep traders guessing. From double bottoms to descending triangles, the market now seems to have settled into a downsloping sideways range. Let’s dive into the latest setup and see how to trade it profitably while we wait for a decisive breakout.
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SPX Deeper Dive Analysis:
Price Evolution in Action
The SPX chart feels like watching a shapeshifter. A double bottom became a triple bottom, flirted with a descending triangle, and now looks more like a downsloping sideways range. The current range stretches from the highs near 6000 down to a base around 5800.
Trading the Range
- At 6000: This range high is perfect for looking at reversal setups.
- At 5800: Range lows invite bullish entries for moves back to the top.
- Waiting for Breakouts: Until we see a confirmed move out of this range, the plan is simple – trade the range back and forth using the Tag ‘n Turn system.
Breakout on the Horizon?
- If price pushes through 6000 decisively, a bullish breakout could take hold.
- A dip below 5800 might confirm a bearish breakout, leading to trending setups.
For now, the sideways action keeps the market predictable, ideal for income trades that thrive on repetition and patience.
Fun Fact
The “double bottom” is one of the most popular price patterns in technical analysis, but its success rate is only about 65%! It’s a reminder that no pattern is foolproof.
The double bottom often signals a reversal when the market hits two consecutive lows with a slight bounce in between. However, many traders misinterpret its formation, jumping in too soon without confirmation. That’s why having a mechanical system like “Tag ‘n Turn” helps reduce emotional trading and improve accuracy.
Happy trading,
Phil
Less Brain More Gain
…and may your trades be smoother than a cashmere codpiece