What Now? Is it time to short? Will this keep going higher? Is it risky to sell here?
The answer to all these questions in my opinion is Yes. In my view, it is time to short purely based on the fact that NFP is now out of the way, EOM done, and season is upon us. Profit takers have been holding off due to the move, however we know that moves like this don't last long, and we are due a correction candle.
From this level, I would be looking for a 50 point+ correction to the downside, before we continue towards the 4400 zone. My target zone for TP on shorts are 4260 and lower, primarly due to the sole reason we must return back here.
Could this be another move similar to the one we saw late march to mid april? Yes but it's unlikely as that was a very very good run. It was however EOM and end of the quarter, so we at least know that if this is following in the same steps then we are approaching the top before a large correction, however as I mentioned, it is unlikely this has more gas in the tank to continue before stopping and refuelling. We have gone through the 4200 level far too quickly.
THe S&P 500 will continue to move up, there's no reason for it not to. Everyone is prepared for a market crash and we all know a crash never happens when everyone is prepared.
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