STATE OF THE MARKET

Reading Global Trends through Charts

When a market breaks out – the most rewarding strategy is “Buy the Dips”

There is a very old saying: In Bull Market, Traders Buy the dips

When an index breaks out – that’s a confirmed Bull Market and hence Buy the dips is a very rewarding strategy.

S&P500 broke out above 1550 in Feb-March 2013 and then rallied a distance before forming a base at 1810. It gave a clear signal back in Jan 2016 of its intent of making a bottom. I covered it back then –

Here’s why S&P500 looked attractive back then:

sppxc
Source: Chartalert.com

Here’s what S&P500 has done since then:


Source: Chartalert.com

Nobody knows what market will do in the future but if one just follows the trend, then it can be very rewarding when things do turn out the way it’s envisaged.

Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication, you agree to make no trade relying in whole or in part on the comments of the writers