SPX - We warned about the bear trap.

Hello investors! Yesterday, I saw some traders calling it a short opportunity, but we already knew it was a bear trap. Just as I said in my last analysis, SPX resumed its trend and yesterday was only a healthy, necessary pullback for the price “take a rest” and go up again.

How we knew it was not time to short yet? Well, it just did a pivot at the hourly chart, and the price found support in both the light blue line (previous top) and the 21 ema. That means yesterday was only a pullback. Hourly chart:


We should be very careful and remember the Dow Theory’s 6th tenet: Trends Persist Until a Clear Reversal Occurs.

Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.

Thank you very much.

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