I am sharing the trading plan for the S&P500 I have sent last week, on January the 27th, to my newsletter subscribers. I updated this plan in my Yesterday’s Mid-Week Update and will keep doing so base on what I anticipate in the S&P500 going forward using the Program and Algorithmic Trading rules, part of in my Trading Method.
‘The S&P500 kept moving higher according to the plan provided on Jan 20th, 2013 and it targeted the 1487 area. Now price could keep moving higher. Actually price could be already in a typical grind higher. This is when professionals and funds sell to Mom’n’Pops. The never ending story (and bandwagon music) is once again being played. Please read my article on the Bandwagon Theory to understand what I meant with that. This could last for weeks if not months into May to July. We will eventually get a retracement, we just .
These are the two scenarios I see going forward (please refer to the below picture):
Scenario 1. The retracement has started or is about to start, in which case price should correct into the next weekly extension long at the 1472 area. Price should then resume its move into 1515 and possibly higher.
Scenario 2. Price will keep grinding higher into the 1504 area of the current setup long and then correct into the 1480 area before resuming the move higher. However price could just keep creeping higher.’
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