Signals & Trading Plan for Tuesday 2/25/20

$SPX $NDX $RUT are now in Major Pullback5.   Futures are showing a bit of  a bounce in price tonight.  Here are some key questions to ponder:  

• Is this a dead cat bounce or the start of a real bottom? 
• Will it be a W bottom like Aug 2019, or a V bottom like May 2019?
• Is there a possibility that Major Pullback5 will morph into a new Down Trend?
• How do we trade short term and invest long term in this new scary market?

It turns out that there is a wealth of information in $VIX $VXN charts to help guide us in deciphering the bottom.    And we have found that volatility charts are much more reliable in their signals than price charts.   You are not as likely to fall into bull or bear traps.

But $VIX $VXN charts are not easy to decipher.   So read our latest trading plan for analytical techniques to determine the answers to these questions.

The full article covers:
Short-term Support & Resistance Levels

• For $SPX $NDX $RUT SPY QQQ TQQQ

Market Internal Indicators

• Volatility & complacency
• Market breadth
• Level of bullishness
• Overbought / oversold levels
• Bullish / bearish divergence

Market Projections and Trading Plan

• For long-term portfolio (long only)
• For short-term trades (long and short)

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