SPX500 is in the middle of a large ascending channel and within a smaller ascending channel within that, and finally at the lower trendline of a pullback channel. Two trendlines converge (green circle) and Friday the index tried to drop through them but buyers came in each time prices dropped. Note the three candles with long and medium lower shadows: the market was rejecting lower prices.
Now despite me wanting to see a good wipeout, and despite the length of the move, and despite the fact that the market is sluggish, the chart seems to be telling me to try long for a while. If the market falls through the green area we could see a rout in which case stops could prevent something painful.
But if the market works higher I will be watching for a chance to get short again because eventually this bull market is going to give way and we will see some nice plunging.
Now despite me wanting to see a good wipeout, and despite the length of the move, and despite the fact that the market is sluggish, the chart seems to be telling me to try long for a while. If the market falls through the green area we could see a rout in which case stops could prevent something painful.
But if the market works higher I will be watching for a chance to get short again because eventually this bull market is going to give way and we will see some nice plunging.