Inverted head and shoulders on the SPX?

Yes.....740-743 area has a small zone of resting sell inventory and then the next major area is 747's to 750's

 

Are you taking shots for a position trade or is this a scalp...thanks.

 

No......still playing like scalps for one to two day trades.......if we do get a lot of selling though I will just stretch out my positions as best I can to take some advantage of it. So no, I am not trading this as longer term position trades since we are still very close to the yearly lows.

Targets at 722.50 and 719.50 now filled......WOW that was fast. :eek: My next targets will be set at 716.50 and then 711.50

 

Some important market aspects to note this morning is that the 707's is very important area that needs to hold imo for the bulls to have something to work with in this rally. Also, all the resting inventory from 721's-724's was NOT neutralized even though we traded to 730 area last night (not all that odd as the spike rally happened in the much lower volume AH session) so this sell response here at the open is not all that surprising. The zone should now be considered though at 726's to 730.00 as that is the area which did cause our current sell response.

With any additional rally to test our AH session new highs, I will look to sell the 728.50 level and higher......will take out current positions at 725.50

 

OK.....just started to sell the retest of the AH session highs at 730.50......first target will be set at 727.50 and next target set at 723.50

 

AMT,

Do you set up limit orders at your target levels once you enter the trade?

 

Filled additional sell positions now at 732.00......targets moved up to 729.00 and next at 727.00 With fill at 729.00 I will have all 730.50 positions out and covered......will only be holding 732.00 fills at that point.

 

Yes......I take out positions manually if I get touch and no fills at levels on occassion.

729.00 targets just filled........next set at 727.00

We still have not yet gone neutral with held resting inventory......one more rotation up though to the high might just do it.....we will see.

 

thanks for answering the Qs.....interesting how you mention that 707 level.

 

Yes......that area does NOT have a lot of resting long inventory from pullbacks yesterday (it has some.....just not a lot), but it is a level that if broken will look like the rally is degrading. The 707's look as it will act as our current over/under level.

BTW, I am in RW's room again today.