S&P 500 rejected at the 200SMA
Bull Trap?
Despite the nice reversal pre-market and rally off the open, the SPX was definitively rejected at the SMA 200; this is notable. See chart:
In this morning’s post , I wrote:
The 6,500 level on the SPX is very important as that has been where we found support several times going back to August.
The SMA 200 for the SPX is ~6621. I do not recommend raising exposure until we reclaim, hold and close above the SMA 200.
Given the SPX could not surpass the SMA 200 my working position remains: I do not recommend raising exposure until we reclaim, hold, and close above the 200 SMA.
In fact, I trimmed some exposure into the descending SMA 200 at the open to manage cost basis, book gains, and raise cash (as per the trade logs).
The chart below adds a second trendline at the session's pre-market low. It and the 6520 level are key levels that must be held.
Revisit this mornings post for the simple game plan I laid out also.
Thank you for reading and see you for the next one!