Trading Plan: S&P May 18, 2023

Summary

5/17 saw broadening of the last few week's range, jumping from a low of 4128 to 4179. Buyers were unable to break thru 4180 level and the market closed at 4172.

Daily Chart

• Support Zones
• 4062 - 4065
• Resistance Zones
• 4176 - 4184
• 4205 - 4213

Hourly Chart

• Support Zones
• 4163 - 4165
• 4156
• 4118 - 4116
• 4114 - 4109
• Resistance Zones
• 4176 - 4184
• 4205 - 4213

My Plan

Short

We remain range-bound in consolidation. I am looking for a pull-back off of the highs of 4179 on 5/17 below 4156 to confirm a reversal and retest of the 4128- 4133 area that's acted as consistent support these last few weeks.

• If the market opens lower and sellers take us back below 4156 again, I will short with 4133 as my first target area.
• If the market continues lower once I close the trade, I will look for a sustained rebound above 4133 before getting long with a 4142 target.
• However, If the market continues lower without a rebound, I want to see 4126 before I initiate another short targeting the 4114 area.

Long

Currently the overnight market is trading in a 5 point range from 4167-4172 for the last 6 hours. Given the surrounding macroeconomic news tonight (NZ Recession Cancelled, AUS Unemployment 3.7% vs 3.5% forecasted, Asia Markets higher, Initial US jobs report tomorrow morning etc), i suspect that buyers will make a move to the upside provided they can break through 4182 and hold that level.

I've had bad luck buying breakouts these last few weeks so if we do see a breakout, I'll wait for confirmation on the first pull-back before going long.

• I suspect we'll see continued resistance at 4184, 4192, and 4208.
• On the way up, i'll wait for the first pull-back at each of these levels before initiating a long targeting the next subsequent resistance area to take profits.
• If we break thru 4184, I'll wait til a rally higher fails before shorting.