SPX Daily Outlook 3/11/2019

SPX Market Forecast

Close of the day for SPX should be above 2747
1st Target High 2754
2nd Target high 2761
3rd Target high 2766
These are the key levels we will be watching in our trading today.

SPX Trading Strategy

We plan to Buy to Open .SPXW190311C2750 (SPX Weekly Option: call, Strike: 2750 Expiration: 03/11/19) at limit price of 8.85, looking to enter after 9:35 a.m. EST.
We will be looking for about a 90% profit and using about a 70% stop along with using our target price levels in the SPX above.

SPY Market Forecast

Close of the day for SPY should be above 275
1st Target High 275.75
2nd Target high 276.25
3rd Target high 276.75

SPY Trading Strategy

We plan to Buy to Open .SPY190311C276 (SPY Weekly Option: call, Strike: 276 Expiration: 03/11/19) at limit price of 0.4, looking to enter after 9:35 a.m. EST.
We will be looking for about a 90% profit and using about a 70% stop along with using our target price levels in the SPY above.

Trading Guidelines

We normally wait till 9:35 a.m. EST to enter our trade, and most often enter the trade at a much lower price than our limit shared above. If market is moving fast in the right direction and approaching our limit, we normally enter the trade early. If the market is clearly heading in the opposite direction of our forecast, we will often delay entry until it turns. We will not enter any trade after 10:30 a.m. EST. Each trader must pick their own exits based on risk tolerance and market conditions. We often employ a trailing stop when our profit goals are hit or price targets are reached.
We use these levels as guidelines for our exit strategy. Once a level is hit, we watch very carefully and will often exit if market starts to reverse course off of these levels.

Our percentage stops and targets are guidelines for our trading. If the stop is near a level of support/resistance we will most often give it a little room. Also be aware that the market has a tendency to close the gap. This means that often it will move towards the previous day’s close and that can be a very strong support/resistance line. So be aware of the previous day’s close and any support/resistance levels by looking at 15 min chart for past 5 days.

Possible Support/Resistance Levels

Possible SPX support/resistance levels: 2760, 2752, 2743.5, 2739
Possible SPY support/resistance levels: 276, 275, 274, 273

Make it a profitable day!
SPX Option Trader