Right now we are dealing with an over extended rally that has set some very lofty goals which have not been reached.
There are 2 things in play right now, that many, if not all, analysts and market participants are aware of because they have predictive power, they are head & shoulder patterns (h&s) double the distance between head and neckline to get objective, and gaps or thin spots on a chart.
There is a problem with them however because they are so well used, the "fat boys" will sometime dangle them like bait, then take the other side of all the buying they create and then push prices back down. I am cautious we are at one of those places now, so I Jockey for position to keep risk small but I still want to be in if we go.
On the 10 year chart of the s&p 500 below I have drawn in some of these , both successful and failed examples.
So as you see we are currently going back into a thin area with targets that are still a minimum of 1054 ish plus we have an inverted head and shoulders pattern that everyone has their eye on that projects to 1250.
I am just cautious of a failure, I mean a trap, because it is so obvious, I hope I haven't added to the confusion.
I also hope that potential new clients can see the way I work will be very beneficial to their financial security. click to enlarge