Alright this is a straight forward easy idea.
The bottom index is the S5TH which is the % of S&P500 stocks above their 200 day moving average. We are currently sitting a hair above 94%
I'm using a weekly chart for the sake of simplicity as when this gets a weekly close above 94 the SPX will always pull back. Just scroll back on the chart and take a look for yourself.
Notes:
The black line is an actual close above 94.
The blue line is a close that's "almost there", anything 93 and above.
I would be expecting a pullback that lasts about 2 weeks. Remember it's a trade, not a doomsday bet. Conversely, if shorting isn't your cup of tea then trimming up some holdings and waiting to buy the dip could be an alternative way to play this.
All the best,
Andre
The bottom index is the S5TH which is the % of S&P500 stocks above their 200 day moving average. We are currently sitting a hair above 94%
I'm using a weekly chart for the sake of simplicity as when this gets a weekly close above 94 the SPX will always pull back. Just scroll back on the chart and take a look for yourself.
Notes:
The black line is an actual close above 94.
The blue line is a close that's "almost there", anything 93 and above.
I would be expecting a pullback that lasts about 2 weeks. Remember it's a trade, not a doomsday bet. Conversely, if shorting isn't your cup of tea then trimming up some holdings and waiting to buy the dip could be an alternative way to play this.
All the best,
Andre
When S5TH had a weekly close above 94 (black line):
Sep 14 2009
Oct 12 2009
Jan 4 2010
April 5 2021
When S5TH had a weekly close between 93-94 (blue line):
Aug 24 2009
April 5 2010
April 12 2010
April 19 2010
Feb 14 2011
April 25 2011
May 13 2013
Mar 29 2021