Really crazy day today. All because bad news from China and failed auction of German Bonds. So we have negative emotions in the market, and sp500 is down of the triangle. This tells us that we should look for short opportunities and avoid hunting for reversals.
We have many great trading setups today, but let’s look and analyze some of them.
Sp500 was full of smaller setups but most interesting was the one, which started yesterday at 1995 and stopped at 1166. Then we had move back to 38.2% retracement. When it failed to break above 100 moving average, there was a strong sign, that index will return to fall. Sure enough, it did. The fall stopped at 1.27 extension. Clear setup and execution.
Sp500, 15 minutes:
Also oil was great to trade today. First trade closed at 1.27 extension (same as sp500), than we had strong move up, but for now I am not changing Fibonacci retracements because for now this seems to work fine. 78% retracement worked as a strong resistance. I believe there will be strong move down.
Wti oil, 15 minutes: