S&P 500 Rips Through Upper Bollinger Band

New day, new highs.

If you’ve been following our posts over the past couple of weeks hopefully you’ve been able to take advantage of this market rally. We’ve been consistently suggesting it’s still not ideal to fight this trend as the path of least resistance remains higher. You can read our recent post on bullish market breadth from earlier this week, or listen here or here.

Today, the $SPY has pushed completely through the upper standard 2,20 bollinger band seen here on the daily time-frame:

For me, with an outlook of the next several days to weeks, this isn’t a sell everything signal.  I look at this as a sign to continue to raise some cash, lock in partial profits, and trail stops higher where appropriate.

Could this be the top? Sure, but until there’s more supportive evidence of that, I rather stick with the dominant trend and momentum.

The strongest markets tend to ride the upper bollinger band higher and remain “overbought” as the majority are fearful and forced to pay up in order to participate.

Over today and yesterday we’ve locked in partial gains in our $DOW ,  $IWM , $DGX and $DKS positions.

Markets spent all last week consolidating and pulling back, let’s at least get 1 full week to enjoy higher prices.

Thanks for reading and good luck out there.

If you need help navigating this market or finding trade setups, check out our premium services.

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Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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