SPX Looking to Make a Move Out of Tight Trading Range. My Plan for 4/25/23
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Market Recap: Tight trading ranges has been the story for all of April and today was no different with ES trading within Friday’s high and low for nearly the entire session. “Chasers” have been getting in trouble this month. It has been really important to hold back from trading breakouts/breakdowns as they continue to fail. Watching for false breakdowns before going long has been my winning formula this month and despite a tight range and little follow through at times, I have been able to string together some nice trades.
In regard to The System, when there is no momentum in the market I do not use The System for trade ideas, but more so to get a gauge for whether bulls or bears are in control. Because the market has been choppy, any trading strategy relying heavily on moving averages likely hasn’t been very effective. That being said, The System has helped me to recognize the fact that bulls have been in control trading above the 50sma on both the 30min and 1hr SPX charts. So buying dips at support has been the play. At today’s close, SPX closed right at the 50sma on both the 30mion and 1hr SPX charts. Bulls took a bit of a break at the end of last week on the 1hr 50sma break but are now looking to reclaim for what could be another push higher.
My Trading:
(Note: All trades mentioned below were alerted live in the Kane Capital discord where we are currently offering a 7-Day FREE Trial. For live trading alerts you can head over to kane-capital.com)