From Richard M. Smith, PhD, Founder, TradeStops:
Wow. What a rally.
When I said six weeks ago that I suspected that the stock market would likely rally faster and further than the neo-bears ever imagined, even I didn’t expect the S&P 500 to rally over 15% in six weeks and be on the verge of making new all-time highs.
The S&P 500 has rallied so sharply and strongly that it triggered a TradeStops SSI Entry signal this week.
Our SSI Entry signal gets triggered when an asset rises more than its normal expected volatility range (more than VQ%) AND our proprietary SSI Trend indicator makes a solid turn up.
Both of those pieces fell into place this week and the S&P 500 triggered a new SSI Entry signal.
The move in the S&P 500 has been impressive … even unprecedented. I’ve been leaning bearish. I was just expecting a…