Ahoy there Trader! ⚓️
It’s Phil…
SPX is tightening up, and the Bollinger Bands are doing their best impression of a boa constrictor.
Price is stuck in one of the narrowest ranges in weeks, meaning a breakout is coming… but not just yet. So, what’s the plan? Pause the Tag ‘n Turn, pivot to range trading, and prepare for the inevitable move.
Let’s break it down!
⬇️⬇️⬇️ – keep scrolling for more in-depth analysis – ⬇️⬇️⬇️
Important Question: Are you ready to trade smarter?
When you’re ready – Dive Deeper Into a Profitable Rules Based Trading System
This Proven 3-Step “10 min/Day” 6-Figure Unconventional Recession Proof SPX Income System Unlocks $500-$5,000+ Days FAST! …
SPX Deeper Dive Analysis:
SPX Trading in a Tight Box
- Bollinger Bands are pinching, signalling contraction.
- DJX shows an even clearer squeeze, reinforcing expectations.
- Price is stuck in a narrow high/low range – a setup for a breakout.
⏳ Time to Switch Gears
With this range-bound action, I’m pivoting to my six money-making patterns, focusing on the four range-trading setups:
1️⃣ Buy range lows for bullish opportunities.
2️⃣ Sell range highs for quick profit-taking.
3️⃣ Buy a breakout of range highs when momentum confirms.
4️⃣ Sell short a breakdown of range lows if the bears take control.
For now, I’m already positioned bullish, so a bullish breakout is preferred. But I’m keeping my bear hedge triggers intact in case things turn sour.
A Quick Drop Before a Breakout?
- $ADD is at a bullish extreme, hinting that SPX may test the range low before any real move up.
- This means a little downside shuffle before a breakout is very much on the cards.
- If so, I’ll be adding to my bullish positions near the range low.
Taking a Birthday Break!
Since the market has decided to play the waiting game, I’m taking this as a sign to start my weekend early. Let’s see what unfolds next week – a breakout, a fake-out, or another squeeze!
Fun Fact: Stock Market Birthday Anomaly?
Historically, the market has an upward bias during the week of a trader’s birthday – but only if they take the day off. (Okay, I may have made that up, but let’s see if it holds true!)
Real Fun Fact:
The shortest bear market in history lasted just 33 days – the COVID-19 crash in 2020. Even market meltdowns can be short and sweet (like cake).
Happy trading,
Phil
Less Brain More Gain
…and may your trades be smoother than a cashmere codpiece