Trade Setup For 23rd July

Here are my zones for 23rd July:

Resistance

1277.25-1278.50
1285.75-1286.75
1290.50-1291.50
1300.50-1301.50

Support

1270.25-1269.25
1261.75-1263
1256-1255
1246-1245

My Outlook

The buyers came through with the goods late yesterday which is a positive sign. The NDX was in trouble at the open yesterday but all the indexes managed to come through with a good run.

Leading into 1280 on the SP and 11,760 area on the DJIA is some traffic that was caught out on this downward run. It may prove to be a battle to get through but the momentum is up at this stage.

The VIX pulled out a good downward move signaling a possible end to the big selling we have recently been seeing. Will it last longer than a couple of weeks or will it turn back down to continue this downward bias in the market?

Oil is helping bring some optimism back into the market with its decline. As long as that is occurring it is a good sign for companies which means equities get a boost. Gold attempted to make a run for higher prices yesterday but has seen some selling pressure hit.

The USD managed a better day yesterday but is far from out of the woods. Oil's decline will help the USD ease.

My Focus

The late run yesterday has opened up the doors for some continued buying tomorrow. Currently we are trading near the 1275 area. If we see a decline down to the 1270 area I will be looking for some strength to enter the market. If we go beyond there, the 1262 area will need to hold to keep the buyers in control.

I'm not keen on the selling side at this point so I will leave it be for the moment. I believe we will see some selling early on but the support levels are likely to garner some extra buying power. I won't cross it out at this point though, I will be prepared to short at the resistance levels should the market present some extremes up there.

I'm continuing to take a casual approach to my trading, not writing as much in my journal so I can focus on the market. Finding things to keep me occupied whilst we are away from my levels is keeping me from jumping in the market prematurely.

My stops are going to be placed behind strong areas and the initial target in easy to reach places as per normal. Things are going well right now so it's a matter of continuing to do more of the same and not becoming overconfident. I will look at making short trades with the live account but not hold myself restricted to that. I don't want any extra pressure placed on the trading.