The S&P 500 is very close to signalling the start of a potential bear trend in the market,
something we have not seen since the 2007-2009 market crash.
Yes, we have seen some bearish moves since, but not a long-term bear trend that has
lasted for months/years.
If this does come to fruition, it will be bad news for bullish investors who have held
positions for years. But it will be good news for long-term trend followers who can
adapt to market conditions and invest in the direction of current trends.
Trend-followers are waiting for the opportune time to place short positions, but that
time is not yet, and patience will need to be applied.
The reason for us needing to apply patience is because the market can go either way.
Price, at the moment, is still inside an area of consolidation and has been since
January 4th 2022.
When price consolidates, it tends to bounce between the consolidation low support
level and the consolidation high resistance level, at $4114 and $4818, respectively.
Currently, price is approaching the support level and could just bounce from this level
and continue moving sideways between the support and resistance levels mentioned above.
But, if price breaks down below support, this will trigger us trend-followers to pay close
attention and be ready for a potential long-term bearish opportunity.
The first breakout of support is not what we are looking for, as this may turn out to be
a fake breakout and catches out the majority of investors.
A pattern of lower lows and lower highs below consolidation will give us the signal
to look for shorting opportunities.
Unless this happens, we will continue to stand aside as we are in an overall bull trend
which could resume if the support level holds. We will have to just stay on the sidelines
and watch and wait for the right moment.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
something we have not seen since the 2007-2009 market crash.
Yes, we have seen some bearish moves since, but not a long-term bear trend that has
lasted for months/years.
If this does come to fruition, it will be bad news for bullish investors who have held
positions for years. But it will be good news for long-term trend followers who can
adapt to market conditions and invest in the direction of current trends.
Trend-followers are waiting for the opportune time to place short positions, but that
time is not yet, and patience will need to be applied.
The reason for us needing to apply patience is because the market can go either way.
Price, at the moment, is still inside an area of consolidation and has been since
January 4th 2022.
When price consolidates, it tends to bounce between the consolidation low support
level and the consolidation high resistance level, at $4114 and $4818, respectively.
Currently, price is approaching the support level and could just bounce from this level
and continue moving sideways between the support and resistance levels mentioned above.
But, if price breaks down below support, this will trigger us trend-followers to pay close
attention and be ready for a potential long-term bearish opportunity.
The first breakout of support is not what we are looking for, as this may turn out to be
a fake breakout and catches out the majority of investors.
A pattern of lower lows and lower highs below consolidation will give us the signal
to look for shorting opportunities.
Unless this happens, we will continue to stand aside as we are in an overall bull trend
which could resume if the support level holds. We will have to just stay on the sidelines
and watch and wait for the right moment.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
