Watch 5860 for Hedge Trigger as Gap Holds Above Support
Ahoy there, Trader! ⚓️
It’s Phil…
Well, it finally happened – Moody’s yanked the US credit rating after hours Friday, and while the news sounds dramatic, the markets aren’t exactly throwing a tantrum just yet. We’re gapping down around 80 points but still hovering near Thursday’s range lows. So far? Just a grumble – not a full-blown market meltdown.
⬇️⬇️⬇️ – keep scrolling for more in-depth analysis – ⬇️⬇️⬇️
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SPX Market Briefing
Let’s be clear: this is big news. But price action doesn’t care about headlines unless those headlines move the tape. And so far, all Moody’s managed to do was bump us back into the prior range floor near 5860 – a level we’ve already defined as technical support.
No confirmed breakdown. No system flip.
The system was already bullish going into the weekend. And while the overnight gap may look dramatic on a headline chart, the bull swing is still green – even with the drop. That’s the power of trading with edge instead of emotion.
So what now?
It’s tempting to jump in and make assumptions. But this is exactly the kind of open that punishes urgency. Sit on your hands. Give the market the first hour or two to digest the news and show its hand. If we break 5860 and hold below it, fine – the bear case starts to wake up. But until then? It’s just noise.
Price leads. Not panic.
And as it stands, the system doesn’t require me to do very much today, yet.
Expert Insights:
Mistake: Reacting to news headlines without waiting for price confirmation.
Why it hurts: Big headlines like “Moody’s Downgrade” trigger fear. But if price doesn’t confirm the panic, traders get chopped up making emotional trades.
Solution:
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Anchor to your rules.
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Let the first hour post-open play out.
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Use predefined levels like 5860 to frame your bias.
Remember: Gaps aren’t breakdowns until confirmed.
Rumour Has It…
“Downgrade Declared Boring – Traders Demand Refund on Volatility”
Reddit’s /r/wallstreetbets erupted in mild frustration after Moody’s credit downgrade failed to deliver chaos. One user raged, “What’s the point of preparing bear memes if we don’t crash?”
Sources inside a major prop firm say a junior analyst was caught whispering “Where’s my VIX spike?” into a coffee mug before requesting emotional support caffeine.
Meanwhile, SPX just kept consolidating.
This is entirely made-up satire. Probably!
Breaking scoops courtesy of the Financial Nuts Newswire-because who needs sanity?
Fun Fact
Not All Gaps Are Triggers
Today’s 80-point SPX gap may look dramatic – but it hasn’t violated the system’s key floors.
We’re still holding above 5860, a level that’s served as a reliable downside anchor. Until that floor gives way, the system remains bullish. This is why the system doesn’t respond to noise, just price.
Gaps may look scary. But they only matter when they break structure.
Meme of the Day
Happy trading,
Phil
Less Brain, More Gain
…and may your trades be smoother than a cashmere codpiece
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