Top 5 Weekly Trade Ideas #1 - SPX Ascending Channel

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We're still riding this trend up since early November. We have retraced nearly the entire election move, but bounced at the top end before moving down to fill that gap. Some important areas and scenarios I think are likely:

#1 - A move up to supply/ATH/upper end of the channel which leads to a rejection. The channel holds after a small pullback and we go on to break above ATH on the second try. I would look for longs on a retest of the previous ATH in this case or just try to get long after the break on some dips. Also possible there is no rejection and we go straight through, would be the same idea.

#2 - The supply rejection leads to a channel break causing further downside. We could also break below the channel before tapping supply early this week. If the channel is broken to the downside, shorts may be good down to the top of the gap where we bounced last week. I wouldn't be surprised to see bulls hold it there again.

#3 - Price falls into the election gap and fills it. This would be a potential area to long, but also if it breaks even lower after that, we could be headed back to the recent swing low near 5700. That will be a key area of interest if price does get down there.

20 jam yang lalu

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Nice move up through supply to make a new ATH, but it was brief. Decent rejection, now looking like we might fill the gap around 5975 - 5970, would look for long entries there and potentially shorts if it breaks below.