YaKa

SP500 - Real & Fake Breakouts since 2011

FX:SPX500   Indice S&P 500
4
This is more for my own ref but if that is of interest:

Since 2011 there has been 14 breakouts of which 5 only really brought the price meaningfully higher level without an imediate correction that allowed trading.

What i would mark as F is one where the following condition are met:
1) the rally did not last more than 2 weeks
2) the rally was limited to 3% (a bit higher when the vol is higher of course)
3) the subsequent correction brough well below the breakout out point within 6 weeks.

Conclusion: most (70%) of local new highs breakouts are within ~2% of a trad-able top with downside of 3% to 10% (mostly 4.5%).

These new tops are a good way to unlock the market and also, most of the time, illustrate the willingness of the market to go higher which it does at a later date.
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