Are we at the end of another bear market rally similar to what we’ve experienced numerous times sine early 2022. Or, is a long-side reversal still in the cards?
In January, we printed the second shoulder of an inverted head and shoulder, resulting in a bull move in SPY above the descending trendline. The bulls roared. However, last week the market took a hard reversal at horizontal resistance and here we are – do we move above resistance or resume the move down?
The next 5 days will be flooded with market data and I’m not comfortable. I could be totally wrong, but I took most of my positions off of the table last week. Regardless of the direction, I’m happy with taking the profits. I’ll limp back in this week if short-term overselling takes place, but who knows. Let’s see the data.
SPY Daily
Inflation will take center stage on Tuesday and the street is looking for a 7th monthly decline. All hell will break loose if it’s 6.5% or above.
source: tradingeconomics.com
This week will be packed full of market shaping data and as a 50 year old investor, I have to preserve capital more than gamble. Don’t risk more than you’re willing to lose. Trade’em well.
