SPX: The bulls won once again!
Hello traders and investors! Let’s see how the SPX is doing today!
We are in a very strong bull trend, as usual, and the index is just retesting its supports before it jumps again. We have been saying this for a very long time now, and since we apply Dow Theory in our methodology, we know that trends persist until a clear reversal occurs (Dow Theory, 6th tenet).
As long as we don’t see any reversal around, there’s nothing to do, but buy when it does a pullback. Thanks to this strategy, we nailed every single movement on SPX since last year.
Now what’s for us here? The index is far from the 21 ema and we have no bullish pattern around. We don’t have any bearish sign either, but this only makes me neutral on the index.
If we drop, the 21 ema and the 4,501 are support levels for us to work with in the short-term.
In the mid-term the 4,480 is still a nice support, which is above the 21 ema. Technically, the index could drop to the purple trendline, and the trend would still be bullish, and for this to happen, we must see a strong bearish structure in the 1h chart first.
But again, I don’t see it as a buy because the risk/reward ratio is not the best, and I always like to buy near support levels, like when the index did this fantastic Piercing Line candlestick pattern just above the purple line. We buy in moments like this, not right now.
Some individual stocks are looking much better, and if you know where to look, you’ll find some undiscovered gems around. If the index drop, probably it’ll create even more opportunities.
If you’ve read this far, remember to follow me to keep in touch with my daily updates, and please, support this idea if you liked it!
Have a good week.
We are in a very strong bull trend, as usual, and the index is just retesting its supports before it jumps again. We have been saying this for a very long time now, and since we apply Dow Theory in our methodology, we know that trends persist until a clear reversal occurs (Dow Theory, 6th tenet).
As long as we don’t see any reversal around, there’s nothing to do, but buy when it does a pullback. Thanks to this strategy, we nailed every single movement on SPX since last year.
Now what’s for us here? The index is far from the 21 ema and we have no bullish pattern around. We don’t have any bearish sign either, but this only makes me neutral on the index.
If we drop, the 21 ema and the 4,501 are support levels for us to work with in the short-term.
In the mid-term the 4,480 is still a nice support, which is above the 21 ema. Technically, the index could drop to the purple trendline, and the trend would still be bullish, and for this to happen, we must see a strong bearish structure in the 1h chart first.
But again, I don’t see it as a buy because the risk/reward ratio is not the best, and I always like to buy near support levels, like when the index did this fantastic Piercing Line candlestick pattern just above the purple line. We buy in moments like this, not right now.
Some individual stocks are looking much better, and if you know where to look, you’ll find some undiscovered gems around. If the index drop, probably it’ll create even more opportunities.
If you’ve read this far, remember to follow me to keep in touch with my daily updates, and please, support this idea if you liked it!
Have a good week.
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