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S&P 500 Trend is Higher Until Proven Otherwise: Top Trade Q1 2022


The S&P 500 has been trending strongly larger because the pandemic low, and on that it’s tough to wager in opposition to it even when at occasions it appears too excessive to purchase. That doesn’t imply we get complacent, although, as an prolonged market can activate a dime and do-so with seemingly little warning.

With that in thoughts, we should stay vigilantly bullish. So long as the SPX stays above the October 2020 trend-line and doesn’t break beneath 4495, triggering a lower-low, then “the pattern is your buddy” as they are saying.

How excessive may the market rise? That’s anybody’s guess.

The popular method to buying and selling equities is to purchase on pullbacks versus chasing momentum at new highs. That is as a result of propensity for equities to say no in pretty quick order after notching new highs earlier than continuing on larger.

A break beneath the trend-line and 4495 would warrant warning and maybe a change in gears in the direction of a bearish bias as deeper correction danger shortly rises.

S&P 500 Each day Chart

S&P 500 Trend is Higher Until Proven Otherwise: Top Trade Q1 2022



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