.382 Just Ahead
A big technical test for the S&P 500 lies just ahead at the .382 retracement of the 1-year & 10-month old bear market.
If the previous 6-months has been a a bear market rally, then the previous 4 weeks would be a soda pop rally. A soda pop rally is when the market behaves like a bottle of soda pop after it’s been shaken up and uncapped. It happens very quickly, makes a mess on the holder, and there’s nothing left in the bottle when it’ s done.
Stay Tuned…
DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.
Here is another bit of market jargon I can add to my trading notebook; A “Soda Pop Rally”. I certainly will be aware of these kinda moves in the future and what an excellent way of remembering them! We just dont have enough of that kinda cool phrases across the pond. Fantastic.
(Ascot, UK)