Hello traders and investors! I hope you are all fine in this glorious day! Ok, so, SPX is in an impressive bull trend, and today is giving us a reversal sign in the daily chart. But how worried should we be with this? Well, let’s find out. Remember to support this idea if it helps you, ok?
In my view, this bearish sign is nothing to worry at all, and if that’s the case we wouldn’t have avoided four bear traps this month – Yes, we avoided successfully four bear traps, the link to these analyses are below, as always. Those who follow our work here know that we don’t try to predict where's the next market's top, our trading style is reactive, not predictive. We can switch to “bear mode” in a second, but as long the bull trend continues, we are still bulls.
What we see here may be just another pullback to its previous supports (blue line and 21 ema). That’s exactly how we avoided the previous bear traps. And once again, if we look at the daily chart, we will see a Shooting Star, just like it did two days ago, and today's price closed slightly negative (-0.21%). Check it out:
I already told you that I respect a lot the bears, as I respect every serious trader here, who work hard and study hard. We are warriors and we all have our convictions. In my view, there’s still nothing to worry, but I booked some profits today, check the links below to my analyses about XP and LB for more details (almost 30% and 45% profits respectively). This is why is nice to follow me here, so you'll be updated about my trades and analyses. Also, follow me on my social media, because I don’t have time to publish everything here.
Now, SPX seems to be seeking the 3130 again, and sadly, most people seem to forget about the Dow Theory’s 6th tenet. Either way, I’ll be here every day to keep you updated!
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.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts; - Trades with clear risk management; - The best of Dow Theory, Price Action and Candlestick psychology; - Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
@Nathan_Black Good morning! Excellent post, as usual, yesterday. What do you view as our key price levels for today to close out still in a good mindset about next week going forward? 3021 for sure...but where do you draw the "line" as to the start of a bear trend, officially (in your view)? Just curious. Today will be very interesting, being the last trading day of the week and month, plus our outside fundamentals/news unknowns!
Nathan_Black
⋅
@farmerisland, Good morning, Farmer! Well, I would gradually start to book some profits if SPX starts to do lower tops and lower bottoms at the hourly chart for sure, just in case.
The thing is the bull trend is so strong that strained the daily chart too much, and in my view a pullback to 21 ema or the fib retracement/previous tops at 2932 would still be perfectly acceptable, even desirable, because SPX just can't go up forever without a rest. That's why we must be very patient, and don't panic for nothing, or try to guess where the next top will be. We will know when it comes, but for now, there's nothing surprising here. So, the line between bulls and bears is not clear, and it would be more like a series of events that would gradually change the trend rather than a single event that would turn the market in an instant. That's why we need to react accordingly to the market.
This is it, my view about the situation, hope it helps.
Trade well, my friend, and stay safe.