Hey everyone, this is Robert Roy, founder of WealthBuildersHQ.com, and welcome to this edition of Trade With Rob, which is for May 18, 2021. The markets just closed up a few minutes ago, we got our final numbers, so let’s go check out the S&P 500.

So as you can see, we’ve got a great Fibonacci here, some of you have seen it before, some of you, this is your very first time. We’ve got this nice V-bottom, made this move up, and got this nice V-top. We’ve broken and played around – 4181, 4191, 4200 level, all three of those. We had this nice, big fail, we pushed back to the 4191 yesterday, and we’re back at the 4151.45 level (which we bounced off of), and we also have the 8 and 21 moving averages sitting right there. Overall, we’re down 10.5 points today. When you look last week’s Thursday and Friday move, it’s not inconceivable to see what’s happening with the S&P. We are in a true bullish bias, so we do have some resistance above our head – 4181, 4191, 4200. So we’ve got three critical levels in a 20 point distance between those three lines.

So let’s go ahead and take a look at our candidate today which is ILMN.

So first, as always, let’s go ahead and identify our V-top and our V-bottom of the fib. The most important thing is that we stretched through here, couldn’t make it down to this target (but we did make it down to what would be our first target), made a move up, and a whole lot of nothing there. We had a little pop, a fail where we couldn’t make it down, and we’re back in here again.

So what we’re looking for now is, if we can get a failure, if we can get a small push up to the 383 level (or somewhere close to it) and a fail, we’re looking at my first target at about 371, and my second target at 361. Your initial stop is 387, if it gets to that height, you’re stopped out of the trade. Keep in mind, if you do hit your first target, sell off half of the trade, keep the other half on. Move your stop down to at least break-even, you can adjust it down the line after that, but move it to at least break even so even if you’re stopped out, the second half is a wash in worst scenario so you don’t give anything back.

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