What is the outlook for S&P500 once we get the US Presidential Election results? This is the question that most traders of US stocks and options have in their mind. Let me start with the assertion that we are still in a bear trend in the big picture. Bear market rallies are common, and often take us up by 25% or more. But inevitably, the trend will reassert itself, and we will be back on our way down. So use this rally to get out of those stocks which you might have bought too soon, and wait for better levels to buy them back. As for sell-levels, well, I think 1045 should be a decent level to get out, but if we get to 1136 levels, I might even think of turning short on some weak stocks! To sum up, don’t overstay this rally in the SNP500 beyond 1136. Actually you should watch what happens at 1045 and run for cover if we start coming off from there.
Related S&P500 links:
Was that the stock market bottom?
SNP500 revisited
S&P500 and Citi
Fifth wave extensions can make you rich!
What is a significant rally in the stock markets?
Harmony in markets: S&P500
S&P 500: Potential Ending Diagonal Triangle
Ending Diagonal Triangle in S&P500?
S&P500 Elliott Wave update
S&P500 index: is a top already in?
S&P 500 update: where is the top?
S&P500 continues its rally
S&P500 remains resilient
S&P500 ready to dive?
S&P500 Update: May 19, 2009
S&P500 Elliott Wave update:21 May 2009
S&P 500 breaks higher: update 2 June 2009
