Corey Rosenbloom: For intraday and short-term traders in the market, it’s important to develop a framework of key levels on the S&P 500.
We’ve seen a clear sideways rectangle pattern develop with clearly defined boundaries (support and resistance) as price alternates within this range.
Let’s update our range (which is unchanged) and note three painful Bull Traps that triggered – and of course how to plan the next swing.
Let’s start with the clear boundaries or index levels for guidance:
1,884 is the Strong Upper Resistance level which has defined the top of the market since March (excluding the divergent trap of early April)
1,871 is the Weaker yet still important Lower Ceiling from which our current “trap” sprung (note highlights)
1,855 is the Midpoint or Value Area of the blue pattern (note swing lows from late March)