Look to Reduce Exposure into Overbought Strength

the fact that market is overbought as S&P poked its head into the level that had been successful in repelling price action in the past does not favor a sustain breakout. The overall technical backdrop however, remains bullish so we’d look to reduce exposure into overbought strength, which might take the S&P closer to 3030 before a significant pullback unfolds

Buying Pressure Deteriorated As S&P Tested Key Level

the big picture remains the same. There is an orderly pullback consolidation, which represents digestion period. However, the fact that buying pressure deteriorated as the S&P tested key price level suggested that most of the potential buyers at this level had already placed their bets. The next batch of buyers typically sits at a much lower level. With this in mind we’d look to reduce exposure into intraday bounces

S&P Struggled To Get Pass 3000

S&P struggled to get pass the important sentiment 3000 mark but momentum 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 buy into market dips rather than chasing breakouts

No Big Commitment to Accumulate Stocks Aggressively At This Stage

S&P climbed above the lower boundary of the pink band, clearing an important hurdle. However, given looming resistance at the important sentiment 3000 mark, there is no big commitment to accumulate stocks aggressively until this resistance zone is eclipsed. As for strategy, traders should consider buying into short-term market dips rather than chasing breakouts

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