S&P 500 Trend is Higher Until Proven Otherwise: Top Trade Q1 2022

HomeForex News

S&P 500 Trend is Higher Until Proven Otherwise: Top Trade Q1 2022

The S&P 500 has been trending strongly higher since the pandemic low, and on that it is difficult to bet against it even if at times it seems


The S&P 500 has been trending strongly higher since the pandemic low, and on that it is difficult to bet against it even if at times it seems too high to buy. That doesn’t mean we get complacent, though, as an extended market can turn on a dime and do-so with seemingly little warning.

With that in mind, we must remain vigilantly bullish. As long as the SPX stays above the October 2020 trend-line and doesn’t break below 4495, triggering a lower-low, then “the trend is your friend” as they say.

How high could the market rise? That is anyone’s guess.

The preferred approach to trading equities is to buy on pullbacks versus chasing momentum at new highs. This is due to the propensity for equities to decline in fairly short order after notching new highs before proceeding on higher.

A break below the trend-line and 4495 would warrant caution and perhaps a change in gears towards a bearish bias as deeper correction risk quickly rises.

S&P 500 Daily Chart

S&P 500 Trend is Higher Until Proven Otherwise: Top Trade Q1 2022

element inside the element. This is probably not what you meant to do!
Load your application’s JavaScript bundle inside the element instead.



www.dailyfx.com