Chart of the Day: S&P 500 short-term setup (5/27/15)

S&P 500 short-term setup for 5/27/15
S&P 500 short-term setup for 5/27/15
  • Yesterday’s play was to not fade a break, up or down. This turned out to be correct, as the market gapped lower on the open, and did not look back throughout the day—ending in a volatile downtrend day for the entire session.
  • Assume bearish mode for the immediate future; early-morning consolidation is likely today. If we see a tight consolidation for the first part of the day, do not fade a breakout in the afternoon, as an afternoon trend becomes more probable.


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.