Current Trend: Short-term technically still down. Med-term sideways. Long-term up.
Strategy: Buy again on a pullback to/near line 1, on a reversal day up from there.
Chart Setup: The S&P had a good rebound rally into our target price zone. It then gave a bearish reversal candle (‘shooting star’) on last Friday night and is pulling back so far. I'm looking for more of a pullback before it heads up again. The odds greatly favour the low being ‘in’ (9th Feb).
Strategy Details: Buy (go long) again on from (or near) a support zone formed by lines 1 and 2 (2672-2640, respectively). Wait for a reversal day/candle up from there to enter.
Target: Besides the pullback potential to lines 1 and 2; to the upside thereafter take half profits at 2792. And more at 2850 if reached. There’s a reasonably good chance it makes its way back to a new all time high.
Stop-loss: A close below 2600 when buying after the correction. Once it trades back above 2710 raise the stop to the low of the correction, and from 2775 raise a trailing stop to a breaking of its prior two-day low.
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