Signals & Trading Plan for Friday 5/31/19

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.

Note that if panic sets in overnight, then $SPX $NDX $RUT are likely to gap down to the next support levels we mentioned in the chart.

To summarize:
$SPX:
2805 is 1st level resistance
2765 is 1st level support
2720 is next level of support if it fails to climb above 2805

$NDX:
7300 is 1st level resistance
7175 is 1st level support
7000 is next level of support if it fails to climb above 7300

$RUT:
1500 is 1st level resistance
1480 is 1st level support
1460 is next level of support if it fails to climb above 1500

Since we are trading TQQQ, here are the comparable levels
TQQQ
54 is 1st level resistance
51.5 is 1st level support
47.5 is next level of support if it fails to climb above 54

We don't plan on adding any more to TQQQ until we see the formation of the 200 EMA pattern shown on the charts.

Disclaimer
This information is intended to supplement your own research and trading systems.  This is our trading plan designed to suit our own investment needs only.  We are not making any investment recommendation to you or anyone else.  If you choose to follow our trades, you may make money, or you may lose money.
Before buying into them, we urge you to read more about TQQQ and TNA, which are highly risky 3x leveraged ETF.