The last post to S&P 500 was November/ December, and the trade ran as follows: short 4700s, 4600’s, and target 3800s. Targets as posted 4497.09. then 4268.80, 4032.75, 3859.03. Lows achieved 4122.35 for 500ish points.
Outside of FX, SPX, Gold Futures, and commodities are traded only when the big moves are available, although many day trades were posted over past years.
The current December – March range runs from 4603.10 to 4122.35 or 480.75 points. September to December ran 4284.68 to 4802.90 or 518 points. Both 3-month ranges are running fairly consistent to historic 300 to 500 ish points to 3-month ranges and matches DXY.
DXY December – March 3 month range runs 472 pips from 94.69 to 99.41, and September to December ran 448 pips from 91.87 to 96.35. SPX 3 month average currently factors as 4551.94 and is an important number for the next two months of trade. DXY 3 month average is located at 96.74 and again a most crucial number to the overall DXY price path.
DXY trades dead in tiny ranges and no different than EUR/GBP. The function of DXY is to trade dead in small ranges as DXY serves its overall purpose as a most important anchor currency to every currency on the planet and stock markets, Gold, and all commodities.
The factor to DXY is the range in relation to every financial instrument and a multiplication problem solved by a calculator. For the past three months, Gold traded 1776.69 to 2022.54 and 2458 points or DXY X 5. The NASDAQ is higher yet perfect while SPX runs together reasonably consistently.
SPX trades a current range from 4392.42 to 3860.75. Above 4392 targets 4468.05, 4551.94 and 4600.65. Below 4392 targets 4219.19, 4184.19, 4032.57. 3989.63 3945.67, 3902.72.
Below 3860.75 targets 3762.21, 3649.79, and 3572.45.
The 5-year average is located at 3198.23. Current SPX at 4200;s is overbought across all averages, and trade strategy is short to at least 4032.57 and 3989.63.
DXY is also overbought across all averages and a short-only strategy. Targets are located at 98.14, 97.76, 96.73, and 95.86. The final target at 95.86 or 400 pips from current 99.00’s translates to EUR/USD 1.1200’s and 1.1300.
DXY 5 year average is at 94.93 and a 12 pip drop from the last DXY post about three months ago at 95.03. Averages are solid from 95.00’s to 94.00’s. DXY is best served as a market forecast tool rather than an actively traded financial instrument.