with prices stretching out to uncharted territories, temptation to take some money off the table is on a rise amid a growing sense that stocks might be running ahead of fundamentals. However, as recent trading actions suggested, nobody wants to do too much too soon. So, while sitting on the overcrowded bullish bandwagon, we’ll begin to watch for the next sell signal
Tag: S&P 500 index
while the overall technical background remains bullish, the S&P is overbought following recent advance. While overbought condition is normal during long-term uptrend, it’s suggested that upside momentum might not sustain without at least a short-term breather. So, there is no big commitment to accumulate stocks aggressively at this point. There is a high probability that the S&P would consolidate before a new leg higher. As for strategy, we would look to increase upside exposure on market dips rather than chasing breakouts.
while the overall technical backdrop remains positive, return of extreme overbought conditions on an intraday basis suggesting that this is not a time to accumulate stocks aggressively. As for strategy, traders should consider buying downside protection for winning positions
while overbought is putting a cap on the upside the overall technical backdrop remains supportive so downside risk could be limited. It is possible that S&P could continue to drift higher as trading sentiment remains strong. As for strategy, traders should look to increase exposure into short-term market dips rather than chasing breakouts