500 index breakout was most likely not a one day wonder! Quality support for now looks to have held and the potential “inverse head & shoulders” patterns highlighted, in these groundhog charts last week, looks more likely. The instructions in the groundhog post was to….lower stops on inverse positions due to support! The patterns and support holding increases the odds the bounce has more to go.
Game Plan….For those that bought at support, use support as your protective line in the sand. Stiff resistance comes into play around 1,130. Will see how things look if resistance is hit…so far harvesting at resistance, aka, trade the range, is still in play.