By Licia Leslie
December 11, 2024
Hi Shoppers,
We have reached the top of my pitchfork in the S&P 500 (Ticker: SPX) and we are beginning to roll over:
I think we will trade down to $6000 and possibly $5944.
Watch SPX this morning retest $6050, fail and trade lower.
Once I see this happening, I will be looking at the S&P 500 Mini SPX (Ticker: XSP) puts expiring on Friday:
They will be trading for right around a buck which will be a great price to nab them.
Now mind you we do have CPI coming out in the morning which could completely turn my plan upside down.
The key is to watch SPX fail its revisit back to $6050.
Draw a horizontal line at that level on your five minute chart.
Don’t go in too quickly, let the stock price reveal itself that it is going down and then grab your puts.
Trade Review
We did not get the rally in Doximity (Ticker: DOCS) and it closed below our stop loss level.
MACD has turned bearish, if the stock begins to trade below the 21 day moving average, puts may be in order.
Thank You for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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