As expected, the 52-Week Strategy triggered on Friday when the indicator closed above the zero line and finished the week at 18, writes Ian Murphy of MurphyTrading.com.
This will be the third attempt by the S&P 500 (SPX) to break the downtrend which has been in place since January by closing above the -1ATR line.
The soft stop is currently $43.65 on a closing basis, which will move slightly during the week. Pay close attention to the 50% retrace of the reversal bar which started this bounce, that level should hold as support on a closing basis if this trigger is going to be successful. If it is breached, it is the first warning sign that the trade is not working out.Learn more about Ian Murphy at MurphyTrading.com.