Hey Traders, I am beginning to see some signs that the major indices (specifically the Dow & SP 500) may be getting ready to give a little of this recent rally back. I am seeing a couple indications that a pullback is likely to occur over the next week or two therefore right now may be a good time to reduce overall exposure. As you have seen in some of my previous ideas, (linked below) these gaps can present some really good short term trading opportunities. The major indices have yet again hit record high after record high however nothing goes up forever and pull backs are vital In order for the next wave of buyers to enter the market and push price higher.. I will be reducing exposure on my long trades & possibly looking to add a couple short positions upon further weakness. If we do get a pullback and these gaps are filled, I will re-analyze the strength in the markets at that time & possibly begin looking for buying opportunities around the 50 or 100 period moving average. For now I am reducing risk by locking in profits on existing long positions.
Purple line-50 day period moving average
I hope this was helpful & I will be sure to update this idea as price action develops. Feel free to ask any questions regarding this idea or the major indices! Thanks Traders!
Purple line-50 day period moving average
