The S&P 500 is well off its worst levels of the year, and while it is possible this is a recovery bounce before another leg lower there appears to be more upside first. But traders will want to be careful not to chase this move higher, rather use volatility to their advantage. The thinking is it could just be corrective, and at some point the market will swoon again.
With that in mind, trading the volatility with a short-term directional bias seems to make the most sense. On the upside, this means looking to jabs lower that start to lose selling momentum as potential opportunities to establish short-term long positions.
With that in mind, trading the volatility with a short-term directional bias seems to make the most sense. On the upside, this means looking to jabs lower that start to lose selling momentum as potential opportunities to establish short-term long positions.
Note
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.