Over the past couple week’s investors and traders have been growing increasingly bearish for the U.S. stock market. While I too feel this rally is getting long in the teeth, there is no reason to exit long positions and start shorting.
My followers know I do not pick tops and I do not pick bottoms. This I explained in great detail in my previous report. There are more cons to that tactic and on several different levels (timing, volatility, emotions, lack of experience, addiction) than there are pros.
Keeping things simple, short and to the point, here is my thinking for today and this week on the broad market. Remember my analysis is 100% technical based using price, volume, cycles, volatility, momentum and sentiment. I try not to let any emotions, gut feel or bias flow into my projections. I say “TRY” because I am only human and at times when the market and emotions are flying high they still take control of me but that is few and far between.
So let’s get to the charts shall we!
S&P 500 Index Trading Daily Chart – SPY Exchange Traded Fund
The S&P 500 index continues to hold up within its rising trend channel and the recent pullback is bullish. Remember the trend is your friend and it can continue for very long periods of times ranging from days, weeks, and even months…