Trade Setup For 10th July

These are the areas I am watching for 10th July:

Resistance

1250.50-1251.50
1257.5-1258.50
1263.50-1264.75
1269.25-1270.25

Support

1243-1241.50

My Outlook

There was quite a selling period we saw in the second half of yesterday. This week has made a lot of moves but really gone no where. What is incredible is that the NYA weekly is showing 5 consecutive weeks of selling right now and made a new low this week.

At this point I will remain in the middle here, I'm not sure we can follow through with more selling after yesterday but I also am not confident we can rebound decently either.

The VIX is still declining although it showed some more Put Option pressure is coming into the market. Not much to say really beyond that.

Gold and Oil haven't really done much from yesterday. Gold may be bouncing here and taking a stab at new highs and Oil's decline may be saved by world events at this point.

Weakness entered the USD yesterday but we still aren't doing anything substantial at this point. I think it needs some more time to work out the state of the global economy as things are being reported as getting worse through figures. There has been mention of a crash by a few different people which on any day of the week is a possibility. Not sure how high a probability but it is one option to clear up the recent uncertainty in the market.

My Focus

Although I am not taking a stance either way, the action from yesterday suggests the pressure is to the downside. I would however expect a bounce initially if that is the case. We are currently trading at around 1246 in the overnight market. 1258 remains a pivotal area at the moment so I will look for weakness should we reach that area.

I also believe 1251 has a few people stuck in positions from Tuesday that weren't quick enough to get out yesterday. I will also look for some weakness there but it may not be as strong a selling point as 1258.

I have one support area down at 1242 for some possible buying. I don't have much faith in that area but should we reach it with a Tick and Volume extreme I will look for a long position.

I am sticking to only trading the s/r levels and keeping my stops behind strong market areas. Sticking with the trade worked for me yesterday instead of getting out early so I will do the same today. I will state my reasons for exiting prematurely and only get out if those are met. I watched the 2 minute chart during trades yesterday to see important areas and it helped so I will do the same and possibly note exits according to that for price.

The initial profit target is going to be put in an easy to reach place and the second position will be trailed. I will be using the offsetting strategy should we reach areas of concern and reverse direction. Having it as an option gives me more confidence in holding on to a position because I don't risk certain gain for possible further gain. I will also keep the question in front of me to help me take positions as it did yesterday.