In our latest analysis for S&P we posted our analysis expecting a wave 4 correction towards 1780-85 and then another leg up towards 1820-25 to complete 5 waves up. Our view was bullish expecting a new higher high because there were several indicators in favor of a new upward move rather than the continuation of the decline. The initial decline from 1802 was not but corrective with an overlapping pattern. Moreover the volume near the highs was not indicating that an important high was in place.
Prices unfold upwards in an pattern and we believe that early this week our wave 5 target at 1820-25 will be achieved. Although trend remains up and there is no worrying signals regarding any trend reversal, we will prefer taking our profits from our long positions from 1772. Our Trading2day Subscribers not only saw us enter long at 1772, but saw us also buy the pull back at 1784 with real-time tweets only through our exclusive for subscribers twitter account @trading2day.
Above you can see our exclusive tweets for members. We took profits on our extra position and we remained long with the rest that we opened at 1772 on November 13th. On that day we reversed from short to long taking profits from both bearish and bullish trades.
So what now? We are ready to take profits and adjust our strategy when the market dictates to. We know that being a stubborn bull or bear will cost you money no matter what the market does. If you want to see our way of thinking and how we trade the markets, ask for a weekly free trial now!!! We will be more than happy to show you how we work in order to find opportunities for profitable trades. As always, thank you for taking the time to catch up on my thinking.