S&P 500 refuses to fall despite many reasons
2023.02.19 05:43
S&P 500 refuses to fall despite many reasons
On Friday, they lost another 0.3 percent, making this their second consecutive losing week. Having said that, the weekly loss was a negligible 0.3 percent.)
S&P 500 Index Daily chart
The session on Friday began very ominously by falling below 4,100 support, a level that had supported the market throughout February. However, supply decreased, preventing a tidal wave of reactionary selling, and prices rebounded from 4,050.
So much for being on the verge of catastrophic failure. The majority of owners shrugged and held on despite the market breaking support. And perhaps most encouraging of all, Friday’s session ended at intraday highs.
However, readers of this blog should not be surprised by this contrarian price movement:
The smart trade is going against conventional trading signals rather than following them in this “opposite market.” Even though stocks may open poorly on Friday, rather than joining the selling bandwagon, keep an eye out for the next rally, which is likely to come quickly.
Keep in mind that the most important thing is not how we start, but how we finish. Additionally, the bears failed to break the market in yet another session on Friday. Even though we came out in the red, the fact that we started low and finished at the intraday highs is bullish rather than bearish.
If every trading session ended in the green, trading would be so much simpler and more enjoyable. But we know that’s impossible and that there will always be bad days. However, at this point, there is nothing in the price action that suggests anything other than a straightforward consolidation of recent gains below the 4,200 resistance.
When we trade what we see and let go of our bullish and bearish biases, making money becomes much simpler. Stop being deceived by these false alarms because this market does not want to rise or fall. Both the dips and the bounces can be purchased until further notice. The market will reclaim our profits a few hours later if we do not take advantage of them.
