I can remember very clearly watching this in 2003 and have referred back to my notes. My mind set was not to go long and wait for the correction back to the 200 day moving average. So here we are again the basic setup is back in place, I will remain more flexible this time. Move the chart forward and see what happened. I donât have any notation as what caused the move.
After this volley higher the market then proceeded to move sideways for the next year. Shorts at that point had given up. The best advice I can give someone is to turn off the news and keep an open mind.
One other thing the index futures would gap open the cash markets and then we would just sit there all day long, same thing kept happened over and over. Without the index futures I donât think the market would have risen like this. The magic index futures!
Another thing that may help some is to watch the MACD, draw trendlines on it, and watch for breakouts. The price may not be giving you clear formations but the indicator will.