S&P 500: Riding the bullish trend

Published On: 17 July 2023, 9.30 AM | Annabelle Tang, Dealer

Trade Setup

• From the chart above, we note that S&P has been trending up consistently throughout the year. Many has noted that S&P has been trending to the point of hitting past its 14 month high. Several factors can be attributed to the bullish growth such as the flight to safety, but to tech stocks instead since Apple stock and other big tech names have continued to show unprecedented growth amidst economic uncertainty. Furthermore, since earnings have remained steady over past quarters, investors may be feeling more assured with this safety net they have drawn for themselves. Despite that being the case, it is still imperative for traders to keep in mind the possibility of recession looming just around the corners.
• Hence,we advise traders to remain cautious and to not blindly chase after the market.

Trade Execution

• In the meantime, a channel has been identified and drawn in the chart above. Traders should long when prices hit support, and apply a trailing take profit technique as prices reaches resistance. This would allow traders to not only benefit from the current bull market and reap in gains from possible further rallies, but at the same time set in a sensible point of entry.