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Here is an excerpt from our trading plan.
The most important action today (Thursday) was that $SPX $NDX managed to stay above the lows of yesterday. There was hope of price gaining some traction for recovery.
But the person responsible for this steady selling since May 9th has just tweeted again this evening:
"On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP,"
In response, futures dropped BIGLY. S&P 500 and Nasdaq dropped close to 1% before stabilizing. That is encouraging, but the night is still young.
If market participants can maintain some levelheadedness, and we don't receive any more "self-inflicted wound" tweets, we may actually see a real rebound tomorrow.
Let's take a look at the 5-minute charts below for $SPX $NDX $RUT. We chose to highlight the 5-minute charts today because we want you to pay attention to the 200 EMA line (dark green curvy line) on each of these charts.
This important line needs to form a certain pattern (as shown on the charts) to provide robust proof that a new Up Segment is starting for real. So watch its formation.