Bull Strikes Back
The market movement last week unpredictable. Good earning data from some big company (Intel, Goldman Sach, etc) seems success to built optimism belong investors. That’s why i cut loss 2 of my bear position as you can see on my previous trade. I speculate for break down signal and enter very small amount of short position of MAR and ES Futures. But it become false signal, after the index rebound strongly after Intel Earning Report. So with the seasonality that take side on bearish (JULY – AUGUST – SEPTEMBER usually be worst months of the year every year), market move the opposite way.
For the bullish side, closing price above SMA 20, 50, 100 and 200 is a very good point. But we face a quite overbought level right now. Index itself need more power to to break through the very strong resistance level @950.
Little overbought right now
$VIX make investor comfortable to stay on long position.
My View : Optimism start to built belong investor. If the index can break out 950 level, it’s better to play long position again. But be aware to take long position, because by seasonality these months don’t take side on bull position. Buy on pullback, and keep your eyes open because bear is watching us and ready to attack anytime.