SPY: Update - Bottom was inHow are people still bearish on SPY? I'm glad I didn't close my equity longs, although I did have a stop out at break even on my SPX position overnight. The way SPX bottomed against the BIG$ support level obtained from VIX showed us there was going to be a rally once again.
The reaction to Trump's increasing odds, and finally victory in the elections was absolutely extreme, 'despair' like my mentor, Tim West described it in his yearly forecast chart. This sentiment extreme sets the stage for a rally, and we already had such rally. Now, if this keeps going there's a chance that it confirms my 2-month timeframe uptrend signal, with a target at 249.
The signal was confirmed by the end of October, and the retest of support simply gave a low risk buy opportunity which we seized.
We'll be examining this closely in the near future. Hopefully Trump manages to help the economy pick up steam with his plans, and doesn't implement his ridiculous ideas like the 'Mexican wall' to name a few.
Positives are many, unknowns too, but I believe the market is full of opportunity right now, with blood on the streets.
Good luck, to all.
Ivan Labrie.
