2015 Pullback D Analysis

“The four most dangerous words in investing are: ‘this time it’s different.'”
                                                                                     Sir John Templeton

Mr. Trump won-the world did not end. Last night’s market temper tantrum did not carry through to today. Volatility was sold, and all three major indexes closed deep in the green. The DOW closed less than 50 pts. from its previous high.

Do I still see volatility ahead-you bet!

Today, I analyze the SPX action during the 2015-13% Pullback D. We will see if the Simple Simon gave quality entry signals.

SPX 2015 Pullback D Chart

Key Points…

1.   SPX tested support two times with a double bottom before breaking out
2.   A SS Buy Signal was generated in March when the CMF and MACD Histogram went positive
3.   In May the SPX retraced and in June, tested the original entry point. This happens 85% of the time and hence my 85% rule.

In conclusion, the Simple Simon DID generate a SS Buy Signal during Pullback D.

Tomorrow, I finalize this series and analyze all four pullbacks and conclude with a strategy on how to play the next large profit taking.

Enjoy your evening,

David O. England

Plan your work, work your plan, and share your harvest! Philippians 2:3-4

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

If you have a question or comment, contact David England at eyeonthemarket@outlook.com.

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