Correction imminent for the S&P 500 Index?
The major, intermediate and near-term trends are all up. And you always trade in the direction of the trend. And the S&P 500 just broke resistance at 1,600.
But, after a +20% gain in an index or stock, I give increased probability to any reversal patterns. We are at that point now with the S&P 500 Index. And seasonal factors align with the probability of a correction. You judge the patterns and trade accordingly.
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