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.