S&P500 - Inside Day
On Friday stocks were relatively quiet as can be seen in the above chart of the S&P500. You'll notice that we now have an inside which also happens to be the smallest daily range in the past few weeks. Usually a small range day gives way to a large range day so I will be in breakout mode on Monday.
Even though stocks have been moving higher, I have a hard time buying this market when I know that seasonally September is the most bearish month of the year. I'm looking for reasons to short but as of now I don't see any evidence of the bears dominating the price action . I think the breakout of the inside day might help forecast the next short term move in the market so lets see what happens on Monday.
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2 comments:
"Even though stocks have been moving higher, I have a hard time buying this market when I know that seasonally September is the most bearish month of the year."
Trade what the chart is telling you is happening, not what you believe should be happening.
Tony - I don't agree. Its all a matter of which chart you are looking at. Daily chart is showing one thing. Monthly charts shows something else (historically bearish sept.) How you resolve what to do when charts at different timescales show different things is a conundrum.
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