Before the market opened on Monday, I wrote a post with my analysis and forecast of the S&P 500. http://bit.ly/6QF3Vx I fired up Marketclub to look at the trade triangles….
click to enlarge
What do you know, 3 green triangles.
Sometimes it pays to admit that A) you’re wrong, or b) you COULD BE wrong. So, I started snooping around to see if anyone I respected thought that MAYBE the S&P 500 could be going higher. I stopped by the AfraidToTrade.com blog, written by Corey Rosenbloom, and low and behold, he points out a bullish possibility. His article: “Could SPX Be Building Yet Another Power Move?” explores the previous short squeeze breakouts that we’ve seen starting in July. I recommend taking a look at the chart he posted at the link above.
That said, I’m not going to be trading with a directional bias until we have confirmation of a direction. For the bulls, that means the long downtrend line and 50% retracement around 1121. For the bears, the previous swing low of 1029. I believe that we’re going to see increase volatility in the S&P 500, and will look to open up some volatility based option spreads.
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