12/11/2018 10:53 AM EST
Daily Chart of the S&P 500 large cap US stock index below:
Blue rectangle shows current trading range. We will not know the market trend until we breakout above or break down below out of that trading range.
Green line shows strong support extending back to February & April. Stocks bounced right off that support yesterday and rallied +500 Dow Jones Industrial Average points. A very good sign.
Red ellipse shows what looks like a shakeout, weak hands selling.
So far today we are seeing follow through on the upside – again, good news
What should you do?
If you are brave, I think you could buy here or increase your stock exposure. The S&P 500 index is about -9.5% lower than its 52-week high, so stocks are cheaper now than the September high. We have a triple bottom, which is bullish. And support at the 2580 range on the S&P 500 index has held.
If you are more cautious, wait until we break out of this trading range to learn where the long-term trend will be.
If you are concerned, dial down your stock % exposure.
And of course, call us anytime – 800-578-3181x0