The S&P 500 (SPX) short squeezed into Thursday. SPX never reached above the 21 exponential moving average (EMA) and continues to show a daily Big 3 sell signal. With no true confirmation for an entry, the best thing we did this week was to stay patient and not get caught up in the short squeeze.
Keep in mind that SPX is showing its first daily negative Squeeze Pro histogram since 2008. Now that SPX is showing bearish momentum and under the 21 exponential moving average (EMA), it could indicate that our uptrend from this year is near an end.
With SPX gapping down on Friday, this leaves us heading into the weekend with the path of least resistance to the downside. Let’s take a look at the most important pieces of the puzzle heading into next week.
In the video above, we’ll review SPX and the pieces that are coming together to show that the change in trend is near. We’ll also review our put credit spread UNG position from this week and the call credit spread in AAPL for November expiration in my Compounding Growth Mastery.
Stay Focused!