Tuesday, November 21, 2017

Round number-itis at SPX 2600?

Mid-week market update: The mid-week market update is being published a day early because of the shortened trading week due to American Thanksgiving on Thursday.

You can tell a lot about market psychology by the way it reacts to news. Early Monday morning (Europe time) and before the market open, a grim Angela Merkel announced that coalition talks had collapsed, and she was unable to form a government. DAX futures instantly took a tumble, and so did US equity futures. Over the course of the European trading day, equity prices recovered and the DAX actually closed in the green. US stocks followed suit and closed with a slight gain. This was a signal that the market has a bullish short-term bias.

I issued a tactical "buy the dip" trading call for subscribers last Friday. Now that the SPX has risen to test resistance at 2600, which represents an all-time high, is it time to sell the rip?

The full post can be found at our new site here.

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