Hey Guys,
The market is up again this morning. The S&P 500 is hanging around the 3,800 mark.
It might be facing some resistance at this price level. It's been trying to break through it for the last couple days without any success.
One possible reason is depicted in this chart of the MES futures (which are correlated with the S&P 500):
You can see that this is the reverse setup of my normal trading strategy. In this case, the price has been driving through the lower Keltner Channel and is now having a reverse pullback. The price is right near that moving average line, and that might be offering some form of resistance.
On a separate but related note, I ran back tests on the reverse of my normal trading strategy (for example taking a short position in a situation like the one we're seeing today with these MES futures), but it didn't reflect any long term edge in back tests.
There have been no new trades today, and no trades closed today, so it's a quiet day on the trading front.
If you have any questions or feedback, I'd love to hear from you.