SP500 Trading Firmly in Upward Channel_Practice Patience

3 May 2019

I must admit, I've been bearish this entire ascent. Taking a step back, the trend is clear as day--the SP 500 is trading firmly inside an ascending channel. I tend to disagree with those that have drawn the upward channel more along the lines of an ascending wedge--in other words, there's room to run to the upside. The ascending wedge pattern shows less "room" at the top of the channel, meaning a breakout up or down is imminent. Everyone that follows the core indices is aware that bearish signals abound (overbought, divergence, etc.), yet the market continues to grind higher. Pullbacks are quickly bought and price has continued its ascent. There's been two "touches" of the lower channel, similar to the 2018 fractal, so something to keep in mind. My playbook is to wait for confirmation that a breakdown is coming...forego capturing any gains trading inside the wedge and wait for a true signal. Learned some major lessons these past four months...challenge your internal bias and play the trend bc its clear as day on this chart. Wait for true confirmation.

Please like if this is helpful.

MS

7 May 2019

Not

There it is, just on time.