Ideally, I would like to see a few more days of resting / corrective activity, following 6 straight days of range expansion, and a prior pivot high is a logical place for a dip or an inside day.
Let's look at sector-by-sector analysis, using The Strat method:
1) Look at the colour of the candle on each timeframe to determine who is in control: bulls or bears✅
2) Make sure the top sectors of
SPX are confirming the index-level picture. Currently 
XLY is showing some discord. Okay ✅ but something to watch for.
3) Make sure the lower timeframe timeframes confirm the thesis of the higher timeframes. They should be aligned to avoid chop. All green on the month. ✅
Let's look at sector-by-sector analysis, using The Strat method:
1) Look at the colour of the candle on each timeframe to determine who is in control: bulls or bears✅
2) Make sure the top sectors of
SPX are confirming the index-level picture. Currently XLY is showing some discord. Okay ✅ but something to watch for.3) Make sure the lower timeframe timeframes confirm the thesis of the higher timeframes. They should be aligned to avoid chop. All green on the month. ✅
Trade active
It was a nice outside day, not a resting day I hoped to see.The V-shaped bounce has retraced 100% of the correction and closed ATH on
SPXConfirmed by the major sectors, including XLY.
Risk ON since Monday.
Now what? Patience. Still want to see a higher low on the daily chart. It can't keep going up in a straight line. A pullback retracing 40-50% of this rally (to 5990-5950) would be healthy.
Trade closed: target reached
Peekaboo'd and had an anticipated pullback, so the excess bullishness has been resolved. Green week and inside Thursday. Green January, near ATH. What's not to like? Another upside resolution attempt tomorrow?Note
No, not closed -- why?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.