Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

S&P ‘Bull Trap’ Becomes A ‘Bear Trap’

Courtesy of Declan

As this rally has often done, just as you expect a reversal to start, bulls come in (hard) to bid up the market. The S&P had the clearest switch as it moved from a 'bull trap' to a 'bear trap'. If it can post a break of 2,597 it will have little to stop it; in such a scenario watch for a fresh MACD 'buy' which would confirm recent losses as a pullback 'buy' opportunity. Stops on a loss of 2,557.
 


More impressive was the recovery in the Russell 2000. I'm not sure it has done enough to consume what will be plentiful supply all the way to 1,515.  Despite the 1.5% gain there wasn't a significant improvement in technicals. There will not have been many longs to have taken a punt on the drift below the 50-day MA so much will depend on the strength of the short squeeze -  today was a good start.
 


The Nasdaq didn't disappoint. It was the safest long trade and despite the morning gap it was able to post additional gains. Upper channel resistance remains the upside target. Today's volume registers as confirmed accumulation.
 

The Dow Jones only managed a weak bounce but the telegraphed 'buy' at support should have survived a stop test.
 


Today's action was a useful start. Key to tomorrow will be closing in the upper part of today's intraday range – irrespective of how much ground it gives up over the course of the day.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!