We really have been at the crossroads now for about 7 trading days and we keep getting closer and closer to the pinnacle.
The good news is that we know the market is at a juncture we can take advantage of on both sides. Also we know that if this action culminates into a break lower, the risk should only be down to 1340-1355 on the S&P 5oo cash, which represents about 5%.
There is plenty more information about where exactly we are in this market cycle and exactly what to expect in the very near future, so read on!!
It is quite common for a market in some type of turmoil to waver from bullish highlights to bearish highlights and it is at this point that we stand.
There are some serious questions about the intermediate term health of this market, regardless of the rally we saw today.
The market must make its move higher NOW or risk the downside risk to 1340 on the S&P 500.
I would remain quite cautious about this current market and let it prove itself before making any type of increase in equity positions. This proof will be forthcoming in short order, so we will not have to wait very long.
The hourly chart clearly shows that it is very close to put up or shut up time for this market.
It continues to struggle higher and really needs a powerful push higher in order to not only remain bullish on the short term, but the intermediate term as well.
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