A bear trend is defined by a series of lower tops and lower bottoms. When there’s a move above the prior top its usually a strong confirming signal that a bottom could be in place. Soon after the opening S&P 500 (SPX) session on 11/03/20 there was a move above the short-term peak made 10/29/20. This is a solid confirming signal of the suspected SPX bottom made 10/30/20. In just two trading days the SPX has retrace close to 50% of the fourteen-day decline from the high made on 10/12/20. So far, the bulls are showing more strength than the bears exhibited on the October decline.
My 11/02/20 post recommended buying non-leveraged SPX related funds on the open of the SPX session 11/03/20. One of the reasons for recommending a trade at the open of the session is because statistically the SPX high or low for the day is usually at or near the open.
Today 11/03/20 SPX opened up 26.50 points from the prior trading day close. The SPX opening price was 3336.30 the low for the day was 3336.30.
Four Dimension Trading 