The Big Bear Trap that could be in play is the price action in the grey shaded area below the red trendline. We could very well rally back up inside of this yellow shaded channel area. Now one thing you don't see on my chart is the 50% line of the channel which seems to be around the 1250 area. This could be a potential short term target if we continue trading higher and break over the 200ema. I would be surprised if we continue running higher with no meaningful pullback, but at the same time I feel much better now that I have analysis to confirm that as a possible scenario and another argument that people may have to start chasing if we don't pullback. We all know how powerful short squeeze rallies can be intraday, so think about that on a daily time frame. Now I am bullish on equities, but cannot and will not go balls in deep and start buying across the board. Key sectors to trade need to be your focus. I will have my weak stocks and strong stocks list and will trade them accordingly. Enjoy !!
SPX Daily
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