On 11/09/23 the sharp plunge in U.S. stocks looked like the start of at least a multi-day decline. Today 11/10/23 the bulls replied with a persistent rally throughout the trading session.
The daily Dow Jones Industrial Average chart courtesy of BigCharts.com shows the position of its moving average lines.
The 50 – day moving average (MA) line is only 7- points above the 200 – day MA.
A move of the 50 – day MA below the 200 – day MA is known as a “Death Cross” which typically can trigger a multi- day decline. Sometimes this indicator can become a self-fulfilling prophecy.
Daily Stochastic remains bearish suggesting at least a multi – day decline.
Traders initiated a 50% short position on non- leverage SPX funds at the open of the SPX session on 10/13/23. Today the stop loss on half of the 50% position was hit when the SPX moved above 4,402.00. The SPX moved up 24.90 points from the 10/13/23 open to 4,402.00 – a rally of .006%. The loss for 50% of a half position is .0015%. Continue holding the other half of the position with a stop loss above 4,450.00.
Four Dimension Trading 