The S&P 500 Index ended on a dip of 6.7 points. It briefly dipped below its 200-day moving average on an intraday basis, but eventually managed a seventh consecutive close above this key moving average.
Market spend more than average time on this final leg consolidation. The last six trading days the market was going nowhere. It's not a good sign for a healthy uptrend rally. As I mention on yesterday's post. If you are still holding your long position, you need to set a tight stop. Seasonally, the closer we get to September and October, the weaker performance the market will be. If market doesn't grab the last chance this week or next week the latest, I doubt the market can go any further.
Although the market shows the sign of weakness, I still want to see it finishing the final run of the uptrend which is my target 1150-1170 with extreme overbought mode. For longer term investors, you can add up your short portfolio now, and average up until it reach the targer 1150-1170.
Remember to set your stop loss and don't bet your farm on this. For my longer term portfolio, I will set my stop loss at 1180-1190, and I will use half of my trading capital to bet on this phase II bear run.
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