Planning The S&P 500 Into The New 2040 Level [SPDR S&P 500 ETF Trust, Dow Jones Industrial Average]

This is the 15th instance of a similar multi-week rally since the 2009 bottom and we’re using the prior events as guidance.

Traditional analysis and planning would have us be bearish and cautious, eagerly expecting a logical pullback against 2,040.

We’ll play the traditional odds accordingly, which would make us cautious/bearish (taking profits or short-selling against 2,040 expecting a short-term pullback perhaps to 2,000).

However, we’ll be open-minded and play the “new market” probabilities which have us breakout bullish above 2,040 in the event price triggers a short-squeeze rally higher beyond the 2,040 (triggering stops along the pathway higher).

We’re objective as traders, not biased, and we plan a bullish and bearish thesis – and let price be our guide.

This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.

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