Hi friends! Looking at the four hour chart for the SPY (S&P 500 ETF,) we can see that the bulls are on fire! The S&P has been in a beautiful uptrend channel, and price action has just broken out to the upside. Also, momentum on the MACD is expanding to the upside, confirming the strength of the current move. The SPY is in uncharted territory at the moment, so it's probably wise to be nimble, tighten your stop losses, and trade with caution. This market is certainly overbought, and the likelihood of the imminent correction occurring, becomes greater and greater every day. For now, this market is poised to move higher. Looking for signs of danger, we can see that volume has been on the decline, signaling some exhaustion in the market, and we are in overbought territory in general. However, do not forget that, until proven otherwise, "the trend is your friend." The market could continue much higher. So many people have called for a correction that hasn't come. Stocks are experiencing the longest run in history, without a 7-10% correction. So invest wisely, and be very, very, careful.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
I agree on caution here; that is great advice. The hourly is very extended and will consolidate sooner rather than later. After such a strong, nonstop move; the retrace will come quick, and will look scary on the lower time-frames.
After the strong close today, I'm expecting a Bullish pre-market, and a "Bull Trap" set-up at the bell. On the other hand, after Brexit I swore I would never again underestimate those who have a vested interest in a Bull Market :p
Thanks for the post. Happy Trading, Charles
adolphus53
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worst prediction
G3grp
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You're clearly seasoned from a TA perspective, what does the swift decline and bounce off the 200MA on SPX tell you is occurring in the here and now?
After the strong close today, I'm expecting a Bullish pre-market, and a "Bull Trap" set-up at the bell. On the other hand, after Brexit I swore I would never again underestimate those who have a vested interest in a Bull Market :p
Thanks for the post. Happy Trading, Charles