Trade Update: Our January 21 Short Trade on S&P 500(SPX) Has Hit Our Second Take Profit Target at $3,220 – 105 points move!
Our January 21th SHORT Signal on S&P 500 at $3,325 has hit our Second Take Profit target at 3,220 and we cover the remaining of our short position for 105 points move. See chart below showing our trade.
Both Nasdaq 100 (NDX) and S&P 500 (SPX) has hit our first Take Profit Targets as the market crash down following continue spread of the deadly Corona Virus in China. The Nasdaq 100 (NDX) gap down today below our target price and traded as low as $8,911 and we close half position at current $8,950 price level for 228 points move. The S&P 500 (SPX) also follow along and crash down to current 3,248 level and we also book our First Take Profit on half position at that level for 77 points move.
See charts below to view our signal updates
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January 21 Signal: The NASDAQ-100 Index futures hit a new record high on Tuesday, closing at $9,173. The index pushed higher carried by Google-parent Alphabet, which rose 1%, becoming the fourth U.S. company to top a market value of more than $1 trillion on Thursday. Looking at the chart we can see how the move up is extended now and beyond the resistance trend line. While this by itself is not enough a good reason to consider a SHORT trade, given the prolonged move up in terms of price and time (quick move up), we believe that in the renaming of this week, we will see price reacting mainly to the spread of the new deadly virus found in China and the news related to its spread in China and around the world. For the reason we suggest traders to SHORT the Nasdaq 100 (NDX) at current level and look to sell half position when NDX move down to $9,000 price level.
In addition the S&P 500 (SPX) trading at $3,329 level look also too extended and we expect a similar reaction for the reasons mentioned above. Traders can SHORT current price and look for closing half position down at $3,265 and a second down at $3,220 level. Due to the news out and current technical setup this move can happen quickly.