Are you a bull hunter or bear hunter?

Market is still searching for bottom, Today S&P500 touching 1077 which is the 10 days moving average. Unfortunately, a sell off is carry on until the end of the day, close down 6.31 points. The last few days you can see the market really want to move up, but the economic environment is not helping at all.

Basically, the market is consolidating between 1107 and 1040, we are at the bottom of this consolidation, you will say the bull's risk reward ratio is better than the bear by just looking at this number. Don't forget we are in a down trend correction, we will never know the end until it change direction. You don't want to catch a falling knife.

There is a trading strategy in mind:

1. When market break through 200 days moving average and the resistance of 1107 with great volume. Wait for fibonacci retracement levels and place long order.
2. Short this market when the 1040 support is broken harshly. Remember to set a stop right bove 1040 and set a target right above next support about 1000 and 990.
3. After market break through 1040, wait until the selling pressure is settle, then start accumulating when it drop to around 1000 and 990. Remember to divide your trading capital into at least 3 portion during the accumulation.