Friday’s Best S&P Turning Points Results: Price opened below the first buy level. The second idea @ 3674.25 was good for a 20.50-point run.
Quick Tip: Second Helpings
The charts you see here are based on our proprietary version of volume-at-price. The levels are legacy high volume price ranges. They stay on the chart until violated so some of them are quite old. They still work though.
A great question would be how many entries are you willing to take on the same level? Notice the first touch ran for 20.50 points. The second touch 10.50 points. The third touch 7.50 points. This is an example that shows how orders fill and then they’re gone. No question this price range had plenty of buy orders… for a while.
Historically, the first touch is best and subsequent touches are lower probability. If you’re aggressive and want to enter those subsequent touches, consider reducing your profit target expectations. Or at least scale out more of the position earlier than you would on the initial entry.
The World Sentiment Index: (+100/-100) DROPS from -17 to -58 with most major world markets bearish, especially China/Hong Kong. Historically lower closes from the open occurred 56% of the time with 20% greater losses than gains.
Catalysts: Columbus Day, no econ. Bond market closed. Russia’s bullying intensifies. Earnings season looks worrisome. Waiting on Wednesday’s FOMC Minutes and Thursday’s CPI.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Short 3713.50 stop 3719.25.
Buy 3577.25 stop 3573.50.
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