S&P 500: Pulling back down to new trend line as resistance holds

The "S&P 500" futures market is acting strongly bearish . Therefore I follow the trend and change my opinion from thinking that a dip to the open gap between 2719.5 to 2725.7 should get bought (as I had mentioned in my last idea. More likely the "S&P 500" is going to sink lower at least down to the other open gap between 2701.27 to 2704.54 and it's possible that far lower prices might get reached, too.

I should have simply sticked with my bearish idea "Drop later this week". The bullish price action on Monday looks in hindsight as of this Wednesday like a classic bull trap. Until the market takes out the Tuesday high at 2742.24 the bias is from now on clearly to the downside.

Short entry: 2725
Minimum Target: 2700
Maximum Target: 2625
Stop loss: 2740

Risk: 10 points
Reward: 25 points (up to 100 points)

P.S. The resistance is also visible here on my "make-or-break" price level chart:

交易進行

Short order was filled at 2725.

Maybe tomorrow there is a minor gap higher, which could mean it might be possible to short a little higher around 2730-2735 too, before the S&P 500 could decline during the next days or weeks.

交易進行

I opened a second short position today after the open at 2730 as I had planned and outlined yesterday.