Timing for shorts and longs in SP500. Explained

13 set 2020

Advance Decline Line has been one of the best indicators recently for SP500 traders. And again we have to watch it. I think we can see a very short-term rally (if the 4h trendline breaks up). If SP500 rallies without a similar move in the Advance Decline Line, it will set up a short entry. It seems to be a very possible scenario based on other studies:

Cycles – top between 17 – 24 of September, followed by a decline till the middle of October

Seasonal – down from September 17th

Intermarket forecast – down till October

20 set 2020

Nota

It is still too early to look for any swing trades in Sp500. I continue to trade it intraday. Based on all my studies (Cycles, Intermarket forecast, Advance Decline Line, Seasonal) we should expect choppy trading with a downside bias. Don’t marry your positions, we will likely see increased volatility before the elections. Talking over the very short-term, if Monday is down hard there is a high probability that we will see a Turn-Around-Tuesday. Overall, selling rallies is still the best option.