The S&P 500 rallied again during the week, as we continue to see massive amounts of bullish pressure. We are approaching the 2900 level, and quite frankly this point I think we are a bit parabolic.
The S&P 500 has rocketed to the upside yet again, as we continue to see a parabolic move in a market that simply does not pull back. While bullish, I am a bit concerned that we have not seen a red candle but sparingly over the last several months. I anticipate that we will eventually go higher, but I would prefer to see some type of pullback to offer value. Short-term traders will have an easier time of trading this type of market, because the longer-term trader must worry about a significant pullback. Because of this, if you are trading longer-term, you need to see a pullback to offer a better entry price.
The 2700 level underneath would make an excellent floor, but unfortunately, I don’t think we see that until we test at the very least the 2900 level, if not the 3000 level. If you are a longer-term trader, you obviously want to be buying and not selling, but going long at this point is chasing the trade, one of the absolute worst things that you can do.
If you are already long in this market, and you should be if you’ve been watching here at FX Empire, then it’s about managing the trade. I believe that stop losses should be below the 2800 level, if not the 2700 level. Obviously, depending on how long you’ve been in this trade to the upside you may be able to adjust your stop losses accordingly. Selling is all but impossible.
MORE WILL UPDATE SOON!!
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