By Technical Analyst Colin Abrams
Recommendation: LOOK TO SELL SHORT
Current Trend: Short- and med-term up but overbought. Long-term up.
Strategy: Sell short a close below line 3, or a reversal week down (more conservative).
Chart Setup: The S&P 500 has moved sideways over the past week with no short signal given as yet. It can still edge a bit higher in the very short-term, but one should still be focusing on looking to sell short.
Strategy Details: Nevertheless, I would not be buying at current levels, regardless of whether it continues up a bit more or not. Sell it short on a close below line 3 (2465) which will be a confirmation of the end of the current rally. Or sell short a reversal week down (which might be a more conservative entry).
Target: The price could still make it up to 2492. But once the short triggers, look for a drop to 2422 to lock in partial profit, and the rest at lines 2 and 1 at 2412.
Stop-loss: A close above the high of the current rally. Then a breaking of its prior two-day high from 2425.
Wishing you profitable trading until next time.
Colin Abrams
COPYRIGHT:
THIS NEWSLETTER IS TO BE READ ONLY BY CLIENTS OF GLOBAL TRADER. UNDER NO CIRCUMSTANCES IS IT TO BE SHOWN (OR GIVEN) IN PHYSICAL OR ELECTRONIC FORM TO ANY OTHER PERSON, WITHOUT THE PRIOR CONSENT OF THEMARKET.CO.ZA. FURTHERMORE, ELECTRONIC TRANSMISSION (EMAIL), REPRODUCING, AND/OR DISSEMINATING THIS DOCUMENT (OR PART THEREOF) IN ANY OTHER MANNER WITHOUT THE WRITTEN CONSENT OF THEMARKET.CO.ZA IS A VIOLATION OF THE COPYRIGHT LAW - AND IS ILLEGAL.