SPX: Potential pullback starting, let's watch 2150
I think we'll see a retracement next, but I'm not sure about calling for a downtrend in the longer term here.
Although fundamentals favor a rally overall, uncertainty over many global events, and proximity to the end of the year, might trigger profit taking, which would drive SPX lower, at least to 2170. If this level doesn't hold, we might test the linear regression channel support, and possibly lower levels, but it's hard to say before hand. It's safer to simply focus on reacting to the key levels and price action in the present.
If we don't drop under the election's open, or wost, under the election's daily low, I wouldn't worry too much, but for now, I remain vigilant. I'm shorting a few stocks, booking profits in some longs, and trading the risk off leg using FX and commodities mostly. Shorting SPX is valid, to a certain extent, but there are better vehicles to trade this move.
Good luck, and watch the key levels on chart to pick the bottom here.
Cheers,
Ivan Labrie.
Although fundamentals favor a rally overall, uncertainty over many global events, and proximity to the end of the year, might trigger profit taking, which would drive SPX lower, at least to 2170. If this level doesn't hold, we might test the linear regression channel support, and possibly lower levels, but it's hard to say before hand. It's safer to simply focus on reacting to the key levels and price action in the present.
If we don't drop under the election's open, or wost, under the election's daily low, I wouldn't worry too much, but for now, I remain vigilant. I'm shorting a few stocks, booking profits in some longs, and trading the risk off leg using FX and commodities mostly. Shorting SPX is valid, to a certain extent, but there are better vehicles to trade this move.
Good luck, and watch the key levels on chart to pick the bottom here.
Cheers,
Ivan Labrie.
Comment:
Pullback started. If anyone shorted some of the stocks I mentioned, you'd be in some profit. SPY wasn't viable using a stop loss, but it's ok. I prefer to short individual stocks.
I'm long overall, but not in $SPY atm.
We can fire another short term uptrend signal here soon, as long as above this blue line.