SPX Trade Recap – July 14
Today's SPX trade was a disciplined bear call credit spread executed with a bearish bias. We sold the 7595 Call and bought the 7600 Call, collecting a 0.30 credit. Price respected our resistance zone, momentum weakened into the level, and the position reached our profit target, allowing us to close the trade for a 3% gain on account balance.
Fundamentally, CPI can influence inflation expectations and future Federal Reserve policy. However, we believed the market had already priced in much of the news. Price action remained the deciding factor, supporting our bearish bias.
Our bearish outlook was based on market structure and resistance rather than the headline itself. SPX failed to break above a key resistance zone, showing signs of weakening buying pressure. That confirmation gave us the confidence to stay with the call credit spread, and the trade unfolded exactly as anticipated.
Disclaimer
Educational example only. Signals are not financial advice; trade at your own risk.