Sunday December 18, 2022 Emini S&P Market Rundown and Expectations with Responsible Day Trading

Whooo doggy! Last week surely was a doozie. It did try to convince us that the market was making a run to the upside, but in the end, the line of resistance held out at the final top pivot, closing back below, pushing the market back down with strength. We could see such effort and strength to try to break through to the upside, but once that huge reversal bar was created on the Daily chart and the close hit back below the resistance line—it was curtains for the long-term longs. And if the MACDS stay with the strength down, we will see more movement to the downside. 

Now, the market is going to do what it wants to do and we could see this make an effort to push it back up is for it to close back above that line of resistance and turn it into support… using it as an area for a bounce back up. It will take the strength of a freight train to make that happen, so I’m not expecting to see it happen any time soon. 

This does not, however, say there is no opportunity for long trades. With a low risk and paying attention to targets, pullbacks are the name of the game. Pullbacks, as we know, can be quite significant in this market. Paying attention to where they can take you in order to be prepared when it starts to push down is critical to taking any trade against the longer term trend.  

As the holidays are here, we can only expect it to be more choppy and more grindy as the weeks go on. Less and less players will be involved in the game and the indecision can be quite staggering. Remember that if you’re taking your time and you pay attention to what the MACDs are telling you, then you can still nail entries with the ability to have a lower risk. Timing is EVERYTHING in a market like this—so don’t be afraid to sit out and learn from it as well. 

Well folks, that’s going to be a wrap for us for the year. We’re taking the next 2 weeks here at RDT to spend time with our families and remember how lucky we are to be able to do make that happen. We wish you the most beautiful holiday season and if we haven’t already, next year—we look forward to catching YOU on the profitable side.