We’ve been keeping track and talking about the S&P a lot in the War Room this month. When this market broke into new highs, we’ve been waiting to ‘buy on dips’ via bullish price action signals. A bullish rejection candle did form, but I did mention in the War Room commentary that this signal didn’t hold much value to go long on because it wasn’t reacting with any significant turning point for the S&P.
The signal did end up failing as the market retraced back into a level we were anticipating to act as support. Well this level needed to hold as support to keep this uptrend momentum intact. We’ve got a nice bullish body rejection candle that formed as the market respected the old ‘all time highs’ as new support, creating a high probability long opportunity for price action traders.
Waiting to take advantage of retracement entries here, but will also take breakouts if retracement entries don’t get triggered. Looking forward to seeing how this price action setup plays out.