Will The S&P 500 Take A Breather Soon?

SPCFD:SPX   S&P 500 Index
The current climb from the October 3rd low has now grown to 8%, that's a 1%
increase from the previous week.

As a reminder, price broke through the previous all-time high set at $3,028 on
October 28th 2019 and we are yet to see a pullback.

If you notice all the rallies highlighted on the chart, they were all followed by a pullback or consolidation.
The previous rally was 7% before a pullback occurred and the current rally has risen by 8% so far.
If this rally is similar to the previous one then a pullback may be coming soon but
we can never predict the market's next move.

Price may have other ideas and continue to rally for some time before we see any exhaustion in price.
What we can do is be prepared in case a pullback develops and anticipate where price may pull back to.

We have the support from the previous all-time high at $3,028 which is a strong level of support.
Below this, we have the $3,000 round number psychological support zone . The move up from the
October 3rd low has been linear so it wouldn’t be foolish for us to anticipate a pullback happening soon.

If we have a break and close above the November 7th high at $3,097, it will confirm a continuation
to the upside. We must now allow price to dictate the next move to determine our next actions.

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" and we are yet to see a pullback."

yes, this gives pause along with the light volume. while I'm not bearish by any means, I'm not bullish here either. I'd much rather see a pullback into the 2960 area, fill that gap on the SPY and then watch price for its next move.

Sublime_Trading VelvetHammersTrading
@VelvetHammersTrading, thanks for commenting and apologies for the late reply. Given the emerging trend since breaking out, it does not look like the SPX is going to pullback that deep to the 2960 level you have mentioned. The current pullback on the SPX may be as deep as it gets as we are in quite a fast-moving linear trend. We already have long positions running on the strongest-performing stocks and will start adding further long trades on the next breakout. If the SPX pulls back any deeper then we will simply manage the trades we already have open which all have very small risk attached, typically no more than 1% to 2%. It is now really down to price to dictate and we will react accordingly.
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