With price extending to a new all time high on this morning’s gap-up, we have a clear scenario.
Traditional odds do favor a pullback/retracement “down away from” the upper Bollinger Band® “back toward” the rising 20 day EMA like we saw in late October.
However, our alternate thesis is the ongoing “bullish short-squeeze” without a retracement which would trigger on a firm breakout beyond 2,580.
In the alternate scenario case, we must ignore all aspects that keeps us logically cautious and bearish – and play the market up toward 2,600’s target.
Take a closer look at the intraday activity and plan your next trade(s) in terms of the departure from the upper Bollinger Band® and 2,580 price pivot.
Stay tuned as we continue to give you more daily updates and market commentaries!
The iShares S&P 500 Index ETF (IVV) was unchanged in premarket trading Thursday. Year-to-date, IVV has gained 16.25%.
This article is brought to you courtesy of AfraidToTrade.com.