S&P 500 TRADING PLAN FOR MON, 05/21

Bears putting up a decent fight! Bulls still staying strong!

Medium-to-long term investors:

Those who followed the medium term models would still be holding their longs into Monday (survived, again, the take-profit stop at 2708 by just about one point). If long, keep your take-profit stop still at 2708 and be happy with the profit if it hits - if it does not hit, be happy knowing that it is accumulating more profits. Those who are not holding any positions might want to follow the caution already published: “...wait for a better re-entry opportunity instead of trying to chase the long trade or a prematurely short trade”. 
While today's - and, this week's - market action is a bit weak on the bulls' part, it does not damage the strong bullishness which unfolded last week. Hence, medium-term models currently indicate no short bias until all the way below 2680. Medium term indications are for a long bias above 2635, flat below 2610, and a short bias below 2680. 

Aggressive, short term, medium-frequency, or professional traders:

Those who followed the aggressive short term models would have gone short below 2720. By the very design, as a short term or medium-frequency trader, you would not be carrying any positions into the weekend, so you would have booked decent profits already and should be flat into the Monday's session. If not, re-consider how you think of your trading style.
Short term models indicate going short below 2720, flat between 2720 and 2735, and long above 2735. For short positions, use the 2705-2700 range as a pivot range to take profits and/or re-establish shorts. Exercise caution about potential sudden spikes up while short within 2700-2680 - use tight stops and small profit-targets within this range. 

Market Action, Fri, 05/18

S&P 500 Outlook for Mon, 05/21

IMPORTANT NOTICES & DISCLAIMERS – READ CAREFULLY:

(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.
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