FX:SPX500 S&P 500 index of US listed shares
SPX500 - Starting with the october 2011 low price has been trading inside a price channel. IMO price will try to trade to 2176 to 2211 before a big correction more than 4-5% that has been the norm the last few yrs. The center line has been resistance and think it could be again until price clearly trades above it and holds it as support. Until price clearly breaks channel support on a weekly close, imo traders will buy the dip. I am going to trade what price is telling me, and its showing me it wants to trade higher at the moment. I believe as long as the August 8th low is not violated, the next dip could be the start of a huge rally towards the top of the price channel. see chart idea here The original channel price was trading, started breaking this year and backtested it as support on the Aug 8 low, which is bulllish price action and signals former resistance is being used as support. I do not want to insult anyone here, but notice many traders trying to pick the top. IMO sellers are fueling the SPX to rally higher when the SPX hunts their stops and makes new highs using sellers stops as fuel in a short squeeze. I could be 100% wrong so a stop should always be used that fits ones risk tollerance.