While we have a bearish approach, we consider that probabilities for more downside are unlikely while market holds 2700 level, looking the following chart ,
as long as 2700 area holds, we will be looking to add our Bullish plays on $SPY or $SPX via short term calls June or even July, once we break above 2740 with a stop at 2720.
Having said that we should still look at some counts that need to be negated to continue with our Bullish Play.
$ES_F As it stands right now from EW Respective, Weekly Momentum is Bearish as last week might have signaled the high, we need to view market as consolidating for next 2 weeks. Daily Market looks more Bullish constructive with Daily Low is in.
Key Resistance area for each index the 78.6% Fib Ret. and the 100% APP of the April 2- April 18 advance. This Should be the Maximum upside if the index are making a complex correction (Potential W-X-Y) as anticipated. Each Index reached or came within just a few ports of these major resistance zones last week. Any continued upside should be monitored yet we are also watching volume.
Key Resistance area on $ES_F : 2744-2761 on $SPX, 2746-2761
Note: To confirm any Bearish play we need to break 2700 and close below 2670
Please review the following chart for more details.. also if you like those charts and updated they are constantly provided in chat room for as low as 15 dollars.. check this link for options
Also here is the weekly chart:
$CMMSA, Rebound Plays could be Comcast, watch key levels and potential play to 38 area
We will give more detailed trade setups and targets, please check us our Chat Room..
Seeking Options Team
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