Chart of the Day: S&P 500 short term setup (


  • Little motion and no new tactical information [yesterday]. Market is still consolidating and still in breakout mode: expect sharp continuation once the consolidation is decisively broken.
  • The edge is still for an upside breakout. Intraday, selloffs are bought with conviction. Though the probabilities tilt toward the upside, respect the potential for a selloff. A breakdown could lead to a sharp and vicious 2-3 day shakeout that could offer good opportunity to nimble short-term traders.


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.