Set-ups and Game Plan for Week 4/4/16 – open

This was one of two premium posts  for members posted before week starting 4/4/16

Last week SPX remained above 2022, the level I said kept the ball in the bull court. Once price got over 2055 we knew that the bulls took price from neutral/bullish to bullish. There is still room higher before larger resistance steps in, but any further highs next week will likely be muted.

The first downtrend line is now near 2050 and the second near 2095-2100. Should price remain over 2074 then that has a high probability of being reached.

As I mentioned in the open interest post at this point I think the market will move relatively slowly next week (at least on most of the days). Below are levels of resistance and support for SPX.

Support: 2067, 2055 and 2050. A breach of 2050 would give the bears a chance to press if they choose to with 2040 as the next support and a level that bulls don’t want breached.

Resistance: Above 2074, 2081, 2092 and 2100.

If the market surges early in the week and the open interest across many of the big name stocks doesn’t shift it will likely be setting itself up for a move back to 2070 or below. On the other hand, a pullback or consolidation can bring better risk/reward long set-ups toward the end of the week. I think not rushing into doing much on Monday will be our best tool for the rest of the week.

Set-ups: These are my current favorites along with the ones I mentioned in the open interest section.