Traders looking for daily swing trades will have found meagre pickings this week as stocks reach their exhaustion point having bounced firmly off lows in late October, states Ian Murphy of MurphyTrading.com.
US nonfarm payroll numbers won’t help either, because they’re not out until next Friday even though this is the first Friday of the month. Maybe Fed chair Jerome Powell’s speech later today can spark something. As mentioned on Wednesday, stocks are technically due a breather at this level and a pullback now would be a perfect setup for a decisive bullish run coming into the year’s end.
There is a temptation at times like this to chase a bounce for fear of missing out, but as can be clearly seen in the Help Strategy chart above this bounce on the S&P500 has exceeded all three targets long ago (arrows) and anything else is a bonus which can’t be taken for granted.
Learn more about Ian Murphy at MurphyTrading.com.