Solid Confirmation Signal

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.

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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