Trading Plan – Monday 23rd May 2022: S&P500 stops short of bear market

Mark NugentMay 2022, Trading Plan

Trading Plan – Monday 23rd May 2022: S&P500 stops short of bear market

Good morning.

Last week was very unsettled. It all came to a head on Wednesday when US retailer results disappointed the markets. The S&P500 had the biggest single day drop in two years. A bear market, that’s a 20 percent drop from the all-time high in January, was very definitely flirted with on Thursday and more so on Friday, when intraday moves crossed the line into bear territory. However, we have not seen a close on the daily chart in bear territory and the 20 percent line is now acting as support.

My sole trade last week, S&P500 long, failed, but I managed to get out at breakeven. There is a brief video of this in the members area.

This week seems to be getting off to a risk-on start (but it’s still early). Economic calendar highlights are mostly in the US. On Wednesday we have the FOMC 4th May Meeting Minutes. Then on Thursday we have GDP and Friday sees the Fed’s chosen measure of inflation, the Core PCE Price Index. These are all Tier I announcements and often move the markets.

As always, I go through my trading themes for the week in the video.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE