I am sharing the trading plan for the S&P500 I have sent on February the 13th, to my newsletter subscribers in the last mid-week update (see an example here) . I will update this plan with what I expect in the S&P500 going forward using the Program and Algorithmic Trading rules found in my Trading Method. In the last weeks price behaved according to Scenario 2 below:
‘The S&P500 price is in a grind higher. While, unfortunately, professionals and funds of Wall St, keep selling to Mom’n’Pops, we know that these kind of moves – which can last for weeks and months – invariably end in a quick crash in which months of gains are destroyed in the the matter of days. The never ending story is once again being played. Please read my article on the Bandwagon Theory. We will eventually get a retrace but when don’t know when. A shallow retrace would bring price into the 1507 area.
The following scenarios were identified (please, refer to above picture):
Scenario 1. If price does not continue higher a shallow retrace into the 1507 could hold with a stop below 1502.
Scenario 2. If price moves below 1502 we could witness a deeper retrace into the 1485 area with targets in the 1539 area (1st target) and 1568 area (2nd target)..
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