Short Squeeze Helps Propel S&P 500 To New Highs (SPY)

Share This Article
October 12, 2017 6:21am NYSE:SPY

sky-clouds

From Corey Rosenbloom: Stocks continue to hold the highs at the 2,550 “Open Air” level on an extended upswing.


Here’s the quick chart update and the plan for the next immediate price swing:

SPX

As I share with members each night, we plan the next swing in price and then play that out – usually in terms of movement “toward” and “away from” key levels – either on a swing (Daily Chart) or intraday basis.

Right now, the price “failed” to pull back (retrace) sufficiently at the beginning of October (notice that the pattern has been pulling back from the upper Bollinger to the lower Bollinger and then moving back again).

This set the stage for an “Alternate Thesis” extended run or powerful short-squeeze.

We indeed got our powerful short-squeeze which propelled the market straight up through all-time highs toward where we are now at 2,550.

What’s the next expected simple plan?

Look back at the red highlights on the chart – reversal candles at the upper Bollinger Band® in the uptrend – and plan for a pullback at least to the rising 20 day EMA again (green).

While that’s certainly the dominant thesis — and should be easy to see — YOU must plan for what you’ll do in the event the market extends the short-squeeze and continues in the lower-probability alternate thesis non-stop bullish swing in which we’re moving currently.

The SPDR S&P 500 ETF Trust (SPY) fell $0.24 (-0.09%) in premarket trading Thursday. Year-to-date, SPY has gained 15.14%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 123 ETFs in the Large Cap Blend ETFs category.


This article is brought to you courtesy of AfraidToTrade.com.


Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular


From Our Partners


Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories