S&P 500 up trend price action trading signal

We’re well into the ‘Summer Trading’ season now, and a lot of the markets are experiencing low volatility trading conditions. Summer trading is where you generally see volatility really thin out and the markets come to a grinding halt. Considering there have been rumours floating around that we’re in the middle of a ‘volatility drought’, with reports showing trading in the Forex market is current down 45%, I was expecting a pretty bad Summer trading season.

Not the S&P Index. It’s been in a solid, stable uptrend for a couple of weeks now. These are the nice stable trending environments that produce the best forex signals, especially when working with price action strategies.

The mean value is a ‘hot spot’ for buy signal to form within an uptrend. Towards the end of last week a bullish rejection candle formed in line with the bullish moment as the mean value held as dynamic support – a good indicator the uptrend is intact. Retracement entries have been triggered on Friday with the daily candle closing above it’s open price.

The S&P is looking to stretch into all time highs if the overhead swing high is broken. From there the sky’s the limit.

S&P Price Action Trade Update

Earlier we covered a bullish price action signal that developed on the daily chart of the S&P market. We’ve been watching the S&P index closely because it’s currently trending beautifully.

price action on the s&p

The bullish pin bar trade pushed the S&P into all new market highs. The trade matured into profit at a nice pace and hit our 1:3 risk reward money management target.

The market will most likely correct back to the mean value now where we will wait for the next bullish price action signal to develop. This is a good example of how well these price action setup work in trending markets, and they aren’t restricted to the currency pairs. We trade the S&P, the DOW and commodities like Gold, Silver and Oil.

It’s all about where the trends are at. If nothing is going on in the currency market, sometimes you will find the other markets are producing good money making conditions. These type of conditions only happen 20-30% of the time, it pays to be ‘picky’ when selecting markets to trade. If it looks to choppy move on and wait for conditions like the ones shown in today’s S&P charts!

2 Comments...


  1. default avatar

    Leonel Ruiz

    I used to trade the Emini but i found it a very fast market 5 minutes time frame.
    Is it wise to use the Daily time frame to price action the S&P 500?

    1. Replying to: Leonel Ruiz

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