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26 Aug 2014
S&P500: Corrective pullbacks towards 1940 long opportunities - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies, sees any corrective pullbacks towards 1940 in the SP500 as opportunities to get long.
Key Quotes
"As we've been writing about in our daily market commentaries, we examined the intra-day price action structure, which suggested the inverted pin bar was likely to lead to new highs."
"This showed not only on the 4hr charts as basing intra-day, but also historically the S&P 500 had formed many other pin bars near the highs, which eventually led to new highs being printed."
"Today was no exception with the major US index notching a couple points past the 'big figure' at 2000."
"For now, I'll remain bullish while we are above 1900 on a daily closing basis. I'll look to take any corrective pullbacks towards 1940 as opportunities to get long and trade with the trend. If the index closes below 1985 on a 4hr basis, then expect some further unwinding before bulls step in as they may be collecting profits before the next leg up.
Key Quotes
"As we've been writing about in our daily market commentaries, we examined the intra-day price action structure, which suggested the inverted pin bar was likely to lead to new highs."
"This showed not only on the 4hr charts as basing intra-day, but also historically the S&P 500 had formed many other pin bars near the highs, which eventually led to new highs being printed."
"Today was no exception with the major US index notching a couple points past the 'big figure' at 2000."
"For now, I'll remain bullish while we are above 1900 on a daily closing basis. I'll look to take any corrective pullbacks towards 1940 as opportunities to get long and trade with the trend. If the index closes below 1985 on a 4hr basis, then expect some further unwinding before bulls step in as they may be collecting profits before the next leg up.