On Dec 31, we described that $SPX $NDX $RUT were still leaning bullish. Prices were ready to climb out of the shallow dip and Surge10 was to be resume. And the following trading session 1/2/20 saw $SPX $NDX gapped up big and rose up sharply, suggesting that the dip was over and Surge10 was back.
However, when we saw this gap up on Jan 2, we alerted you to the fact that it may actually be a setup for a top. We recommended not to chase prices up, or initiate new long or short positions yet. (We were actually starting to trade TZA in the Model Portfolio.)
The prudent approach turned out to be a good strategy because Fri Jan 3 brought big drama. The bombing news made $SPX $NDX $RUT gap all the way down to Support2. They then rose up and formed a dramatic top.
The full article covers:
Market Internal Indicators
Short-term Support & Resistance Levels
Market Projections and Planning Your Trades
To read the full article, register your email here.
You will get immediate full access to all our nightly analysis and trading plans.
No credit card necessary. Trial membership is FREE for one month.
Here are testimonials from our readers.