20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Monday witnessed a session of modest gains for the S&P 500 index, edging up by 0.4% at the close, and breaking a four-session streak in the red.
The S&P 500 index is emerging from its most challenging week since early March 2023, ranking as the second-worst of week of the year, after experiencing a 2.9% decline.
The price action on Monday remained within a relatively narrow range, with the index fluctuating between a low of 4,302 and an intraday high of 4,336 points.
Among the top 10 components by weight in the S&P 500 index, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), nine stocks recorded gains during the session, with Microsoft Corp. (NASDAQ:MSFT) being the sole exception. The most substantial boost to the broader market’s daily performance came from Amazon.com Inc. (NASDAQ:AMZN), which saw a 1.6% increase during the day.
However, the bullish sentiment was somewhat restrained by a session marked by a surge in Treasury yields. The 10-year yield surpassed the 4.5% threshold, while the 30-year yield climbed above 4.6%, both reaching their highest levels in over a decade.
S&P 500 Daily Chart Analysis
Since its peak in July, the S&P 500 has experienced a 6% decline, with September currently reflecting a 4% drop.
A significant focal point emerges in the form of Fibonacci retracement analysis applied to the S&P 500’s range from its 2023 high to low. This analysis designates 4,200 as a critical level to monitor, one that could signal a major trend reversal for the broader market.
Notably, this level aligns precisely with a 50% retracement of the aforementioned range. Should the S&P 500 breach this threshold, it would effectively wipe out all the gains it has delivered since early June.
Adding to its significance, the 200-day moving average converges at this juncture. The S&P 500 has maintained a position above this moving average since March 2023, underscoring the pivotal nature of the 4,200 level.
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Photo: Shutterstock
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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