SPX at ATH! Which strategies to use now?

Hello traders and investors! Let’s do a complete Multi Time Frame Analysis (MTFA) on SPX today! We are going to look at the charts, then we will discuss about strategies.

It did a new ATH today (close), which is impressive! The U.S. market is very strong, and it seems the bears can’t stand a chance. There’s no sign of a pullback ahead, and it seems SPX just fulfilled a chart pattern named V shape recovery.

Now we are near a natural resistance zone (red line), and SPX still must do a proper breakout from the black line (pre covid-19 ATH). But SPX is trading above the 21 ema, so, if it will do a pullback in the future, it has the 21 ema and the purple line as important supports levels.

Now, let’s see the daily chart:


The only thing that bugs me here is the decreasing volume. Another important thing to keep in mind is the purple trendline, which has been guiding the price for a while.

If SPX loses its trendline, the red line at 3280 is a target for a pullback. But again, it would be just a pullback, not a reversal. When we see a pullback, we buy near its supports. Very simple.

But until now, there’s nothing indicating there’s a pullback ahead. Let’s see the weekly chart for a complete analysis:


Since we are near a natural resistance, it is never a good idea to buy. Also, is not interesting to short, as the Risk/Reward ratio is not good. Now is the time to manage positions. The weekly chart suggests that a pullback to the purple line around 3232 would be acceptable.

Now, strategies:

If you are long, just book your profits if SPX loses the purple trendline in the daily chart. Another good idea is to book your profits if SPX closes under the previous candlestick low, this is a trailing stop.

Or you could just wait for a bearish pivot in the hourly chart. All these strategies are very good to manage your positions in the most intelligent way possible.

Then you may just buy SPX again after the pullback, when it gets close to a support. This will eventually happen and is better be prepared!

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