S&P500 futures are lower this morning on continued North Korea headlines. Up until late yesterday afternoon, every single named sell-off has ultimately been a tremendous buying opportunity for stocks. Anyone buying the dip or named sell-off in the S&P500 since its inception, up until late yesterday afternoon, has done incredibility well.
With that being said, the historical success rate of buying the dip stands at 100% up until yesterday afternoon. I think this pull back will be like the rest and the market will roar to yet another record highs. The question is how long until we see new record highs again?
Let me start with this, and I will be brief with the opening bell coming, trading for downside in this market, and especially in 2017 has been tremendously difficult. The trend remains up and as such trading against the trend, albeit one that has slowed considerably, is a recipe for failure.
However we can look now at momentum rolling over. And in almost every case the S&P500 has rolled over with it.
$IWM - small caps and $QQQ - tech have already seen their momentum roll over. Today the $SPY will trigger. And I think at least over the short term the market will come down from recent records with the $SPY trading to ~$245.
Again trading for downside has been incredibly difficult.
However this pull back should offer up some decent downside trades. I'll be watching the likes of $AMZN and $GOOGL for breaks of support. $AAPL may have blown off its top yesterday as well.
The opening bell nears. See you in the chat room