As the market climbs to new highs
It does so on a wall of worry
The market has to crash! Are common thoughts when usually the opposite is what tends to follow
With that being said for those that are nervous a simple approach to limit your downside can be by trailing your position by the recent pivot low
Now you will at some point get shaken out and more often watch the market drift higher but for those that are nervous it can help one sleep better at night with some type of plan
There is another major pivot low at SPY $420
And a much more significant one at the psychological level of $400 as the 200 day catches up to that area (good sign)
For now one could expect the market to continue in this grind up as the market works towards the next major psychological level of 500
That might seem far off yet its only a 10% move from where we are currently.
It does so on a wall of worry
The market has to crash! Are common thoughts when usually the opposite is what tends to follow
With that being said for those that are nervous a simple approach to limit your downside can be by trailing your position by the recent pivot low
Now you will at some point get shaken out and more often watch the market drift higher but for those that are nervous it can help one sleep better at night with some type of plan
There is another major pivot low at SPY $420
And a much more significant one at the psychological level of $400 as the 200 day catches up to that area (good sign)
For now one could expect the market to continue in this grind up as the market works towards the next major psychological level of 500
That might seem far off yet its only a 10% move from where we are currently.