Bulls Got Bolder and Prevailed into the Last Weekend! Bears only Hope is a Geopolitical Event?
On Friday, the S&P 500 Index broke out of the 2735-45 range that we referred to in the forecasts for the last four days and triggered long (bought) positions by both our Medium-term and Intraday/Aggressive models, as alerted to in our Intraday Alert published on Friday after noon (click here for the full report). This action confirms the strengh of the bulls in the current market and the weakened bear.
Model Biases/Outlook:
After 14 consecutive days of bearish bias, our models have negated the bearish bias on Friday!
For Monday, the models continue to indicate the risk tilted towards a move up to test the 2775-85 region before further directional bias could pull the index in either direction. On the downside, 2760-2750 continues to act as a strong support band.
Trading Plans for MON 07/09/2018:
Medium-term/long-term Investors
The medium-term models are now long – bought at the index level of 2752.50. The models have a stop to sell the current long position at 2754. If the stop is hit, stay flat between 2760 and 2725. Meidum-term models indicate no bearish bias until below 2725.
Aggressive, Short-term, Intraday, or Professional Traders
The short-term/Intraday/Agressive models are currently long – bought at the index level of 2745.50. The models have a stop to sell the current long position at 2758. If the stop is hit, the models would stay flat between 2760 and 2740, and go short (sell) under 2738 with tight stops.
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(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.
(ii) Do NOT make your financial investment or trading decisions based on this article; anyone doing so shall do so solely at their own risk. The author will NOT be responsible for any losses or loss of potential gains arising from any investments/trades made based on the opinions, forecasts or other information contained in this article.
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