Hey Market Pilot,
As we head into a new month, we are seeing similar patterns set up from recent history in the SPY.
Oftentimes, we talk about this pattern in a bullish sense. Since we’re in a bear market, we’re observing a pattern where price bounces toward the daily 50 simple moving average (SMA) and continues lower.
Since the market is a bit extended, we could see price bounce at the 50 SMA but ultimately head lower.
On the hourly chart of SPX, we’re seeing an Inverse Trampoline move, which is a false long situation. This is telling us that any bounces will likely be shorts.
We’ll review examples provided to us by Chinese names of where things might go. These names show Inverse Trampoline moves where price tried to get to the hourly 50 SMA while the Moxie indicator was below zero.
Long story short, we believe bounces will get sold into. We’ll wait for a bounce to enter new short positions.
I’ll be reviewing the Moxie checklist I’ve used to maintain consistent gains in this uncertain market in tonight’s webinar at 7p.m. Central. We’ll cover how to prepare for the next “bull run” and how I use one indicator to trade any market trend. Don’t miss out! Register for free here.
Your Profit Pilot, TG