Trading Box

The SP 500 on the daily chart has been trading in a box since early September, within a 3.5% range. One can also count five waves. Call it a reelection tussle, a holding pattern, indecision, a basing pattern for a move up or a topping pattern. It should be noted that support from the June low was regained yesterday, after trading below the line four sessions. Most metrics are moving back up. Will this be the breakout above 1475 this time, or another decline as soon as option expiration week is over? My contrarian indicator shows too much bearish sentiment, which should be bullish in the short term. My risk on/off indicator is green in the short term. There are 14 points (1%) to go to clear the box. However, many weekly charts are showing stiff resistance has been reached. Oh, decisions!

 

[Scout333]

Easy call if we had two or more IFTs. Not so much with only one IFT left this month which is where I am. I suspect we'll get hammered next week but will we bounce back end of the month? Decisions, decisions.

 

[gronk007]

exactly...my only IFT move left is the 100%G...do I move now and take the 3% or so for the month or do I let it ride?

 

[IndianaJones]

exactly...my only IFT move left is the 100%G...do I move now and take the 3% or so for the month or do I let it ride?

move back to the G in stages to hang onto some of those gains....say 50% now then maybe another 20% in a day or two if things still rise....that way you have cashed in some of your gains while leaving some stock exposure...we got unlimited moves back into the G fund...