A quick update on the state of the S&P 500

Posted on by The INO.com Team

The sharp rally we saw on Friday followed through on Monday, but appears to have run out of steam. In this new short video, I show you what you should be looking at in this market and how I think it should be played.

The video is short, less than two minutes, but you'll get a lot of good information that will help you trade these choppy, choppy markets.

I'm also interested in your views on the S&P 500, so just leave us a comment  and tell us what you think.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

15 thoughts on “A quick update on the state of the S&P 500”

  1. Sorry,still not getting it.If you already have a monthly green in place, why would another (initial?) monthly green appear? Wouldn't the next monthly be red?

  2. Sr.Adão ou sr.professor!
    Vou tratá-lo se não se importar.Sr.Professor!
    Peço desculpa de não têr prestado mais atenção ás suas informaões.
    Hoje senti que me quere ajudar.Obrigado
    Aproveito para lhe pedir entradas e saídas na empresa AIG.
    Obrigado pela sua atenção

    Jose Gomes

  3. Above you state:"You would then use the initial monthly "Trade Triangle" as an entry point..." - what do you mean by "the initial"?

  5. Adam, Thanks for the post.

    If you draw a trendline from the start of the downtrend in early May, you can see that the trendline was broken a few days ago and the INX has stayed above that trendline since.

    I believe if the market stays above the 1100 area for the next couple of days and starts to move into the 1110-1115 area then we could be looking at the start of another move upward. next resistance isn't until 1173.

  6. in the video adam said:our weekly triangle is green so you should be out of your trading positions??? so red means "in"??? i am new here and haven t really learned the details yet but could someone explain, thanks.

    1. SD,

      Thanks for your feedback.

      How "Trade Triangles" work in stocks.
      The major "Trade Triangle" to watch in trading stocks is the monthly "Trade Triangle" as this triangle determines the trend. We use the weekly "Trade Triangles" for timing purposes. Let me give you an example, if the last monthly "Trade Triangle" is green this indicates that the major trend is up for that stock. You would then use the initial monthly "Trade Triangle" as an entry point and use the weekly red "Trade Triangle" as a stop out point. You would only reenter a long position if and when a green "Trade Triangle" kicked in. You would then use a weekly red "Trade Triangle" as a stop out point. Providing that a monthly green "Trade Triangle" is in place the trend is positive for the stock. The reverse is true if a red monthly "Trade Triangle" shows that the trend is down. You would then use the weekly "Trade Triangle" for entering and exiting the market.

      How to use trade triangles in futures and Forex.
      In the futures and Forex markets we use the weekly "Trade Triangles" for trend and the daily "Trade Triangles" for timing. Let me give you an example of how that works. If a green weekly "Trade Triangle" is in place it indicates that the trend is positive for that market. Initial entry point would be on the weekly green "Trade Triangle" and then you would use a red daily "Trade Triangle" as a stop. For example if the trend was up on the weekly you would exit a position on a red daily triangle. This is not to go short but only to exit the position and wait for the trend to reestablish itself on the upside. In the event the trend that does not reestablish itself and reverses with a weekly red "Trade Triangle" you would go short on the weekly "Trade Triangle" and use the daily "Trade Triangle"for money management and reentry points.

      All the best,
      Adam

  7. I thought I was suppose to be out of the market at 1040 or go short. Well, I went short. Am I suppose to take a big loss now that we broke over 1109? Trying to understand these trade triangles...not much help so far.

    1. Buddy,

      Thanks for your feedback.

      Hope this helps.

      How "Trade Triangles" work in stocks.
      The major "Trade Triangle" to watch in trading stocks is the monthly "Trade Triangle" as this triangle determines the trend. We use the weekly "Trade Triangles" for timing purposes. Let me give you an example, if the last monthly "Trade Triangle" is green this indicates that the major trend is up for that stock. You would then use the initial monthly "Trade Triangle" as an entry point and use the weekly red "Trade Triangle" as a stop out point. You would only reenter a long position if and when a green "Trade Triangle" kicked in. You would then use a weekly red "Trade Triangle" as a stop out point. Providing that a monthly green "Trade Triangle" is in place the trend is positive for the stock. The reverse is true if a red monthly "Trade Triangle" shows that the trend is down. You would then use the weekly "Trade Triangle" for entering and exiting the market.

      How to use trade triangles in futures and Forex.
      In the futures and Forex markets we use the weekly "Trade Triangles" for trend and the daily "Trade Triangles" for timing. Let me give you an example of how that works. If a green weekly "Trade Triangle" is in place it indicates that the trend is positive for that market. Initial entry point would be on the weekly green "Trade Triangle" and then you would use a red daily "Trade Triangle" as a stop. For example if the trend was up on the weekly you would exit a position on a red daily triangle. This is not to go short but only to exit the position and wait for the trend to reestablish itself on the upside. In the event the trend that does not reestablish itself and reverses with a weekly red "Trade Triangle" you would go short on the weekly "Trade Triangle" and use the daily "Trade Triangle"for money management and reentry points.

      All the best,
      Adam

  8. Please clarify for me Marketclub's position on the INX. The monthly indicator is down( long term trend is down) yet when I click on the commentary icon for INX it states it is a long term up pattern..I am new subscriber and am confused.. Please clarify.

    1. Jim,

      We are on the sidelines in the INX at the moment. We still see the major trend as down for this market based on our monthly Trade Triangles.

      All the best,

      Adam

  9. Adam, thanks for the post.

    If you draw a trend line of the recent downtrend from early May you will see that the INX has broken up through that trend line, which I believe is a good sign. If the market can get past (and close) above the 1100 area then the next resistance isn't until 1173.

    If that happens I believe the market will be heading higher.

    As I'm writing the S&P is at 1108. I'm hoping to NOT see a late day sell-off.

  10. This phase of the market and the world's rocky financial system is giving me gray hair Adam 😉

  11. sir if s & p 500 break his resistance and make double bottom then you give target till 1151 . can it move and trade above 200 days moving average ? trade below 200 day moving average means market weak . euro zone also affect market . then upside possible?

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