It’s important to have a good eye on what the market is objectively telling us, rather than being surprised by profit taking.
The declining 5-day moving average and rejection at the year-to-date anchored volume weighted average price signal not to trust rally attempts.
This is a great chance for you to do smart things like not buying the dip.
“For now with a declining 5-day moving average, there’s simply no reason to be a buyer of the S&P 500 or of the NASDAQ.”
Don’t buy the dip just because it touches there initially, wait for confirmation of support in that area before considering a day trade.
It doesn’t make sense to wait for the buyers to regain control, let the institutions do the dirty work of finding the support.
“Don’t try to buy the dip, wait for it to flatten out.”
Energy is the big winner this year so far.
