From Corey Rosenbloom: I’m thrilled to know that logic prevails and price is doing what it “should” be doing at the moment within the S&P 500.
Odds overwhelmingly favored a pullback/retracement toward lower Fibonacci Retracement levels for the @ES (S&P 500 futures) and right now – as we start December – that’s exactly what we’re seeing.
Here’s today’s updated Emini (@ES) trading levels for your trades:
As traders, we can’t be forecasters – we must assess the probabilities and then act on them knowing full-well bigger moves tend to occur when the majority (of traders) are surprised and forced to stop-out rapidly.
That’s not occurring right now – odds strongly favored a pullback following many, many days of gains, and that’s precisely what we’re seeing. In the chart above, you can see the MACD simple moving average clearly progressing lower over the past several weeks, along with the market breadth ($ADD).
The initial downside target for the S&P 500 is the 2,180 pivot, and if the retracement picks up steam from there, we’ll be playing toward 2,160. That would mark a 1.4% pullback from current levels
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The SPDR S&P 500 ETF Trust (NYSE:SPY) fell $0.41 (-0.19%) to $219.16 per share in premarket trading Friday. Year-to-date, the largest ETF tied to the S&P 500 index has gained 7.7%.
This article is brought to you courtesy of AfraidToTrade.com.