Timing for shorts and longs in SP500. Explained

Advance Decline Line has been one of the best indicators recently for SP500 traders. And again we have to watch it. I think we can see a very short-term rally (if the 4h trendline breaks up). If SP500 rallies without a similar move in the Advance Decline Line, it will set up a short entry. It seems to be a very possible scenario based on other studies:

Cycles – top between 17 – 24 of September, followed by a decline till the middle of October

Seasonal – down from September 17th

Intermarket forecast – down till October

Comentarios:

It is still too early to look for any swing trades in Sp500. I continue to trade it intraday. Based on all my studies (Cycles, Intermarket forecast, Advance Decline Line, Seasonal) we should expect choppy trading with a downside bias. Don’t marry your positions, we will likely see increased volatility before the elections. Talking over the very short-term, if Monday is down hard there is a high probability that we will see a Turn-Around-Tuesday. Overall, selling rallies is still the best option.