After the market closed yesterday I wrote in the first Stock Market Trading article about the market direction outlook for today and how to lay out your charts for trading today. Today I decided to do the S&P 500 once I noticed in the morning the selling the Dow. I figured if the S&P 500 can get down to 1500 it might just have some further trouble which could mean even more selling. I also like the premiums in the Spy Put Options better than in the DXD UltraShort ETF. I will write more about that later in the day.
Laying out the SPX charts is exactly the same no matter which index you are trading against when doing a Stock Market Trading trade.
Stock Market Trading 2 Day SPX Chart
Here is the two-day chart set for 5 minutes. I have marked the close on Wednesday.
First thing this morning there was selling. The S&P by 10:05 tested 1500 and bounced. Point B then failed to recover the day’s open, we now know that the rest of the day will be lower.