Today 03/31/21 was the end of the quarter. Sometimes the end of a quarter can be a point at which a trend changes. If the trend has been up during the quarter, fund managers would likely want to hold profitable positions. The best performance figures could be recorded on the final day of the quarter. Then there are fund managers that buy the best performing stocks on the last day of the quarter. The fund would then be on record as holding these stocks even if the fund didn’t hold the stocks during the quarter – this is called window dressing.
When the new quarter begins the incentive to buy or even hold stocks is greatly diminished.
The daily S&P 500 (SPX ) chart courtesy of Trading View illustrates that the Ending Diagonal Triangle could be complete.
Today the SPX came close to major Fibonacci resistance at 4008, the “magic” 4000 number, and the rising trend line.
In the markets sometimes close is good enough.
Combined with the vast amount of bearish evidence chronicled on this website the time to take a bearish trade has arrived.
On the open of the SPX session, 9:30 AM – ET – 04/01/21 short 100% non-leveraged SPX related funds. Use a move above SPX 4060 as a stop loss on 50% of the position. Use a move above SPX 4090 as a stop loss for the remaining 50% of the position.