The rally late last week could create temptation to try to grab a win from this bounce, but is that what smart money would do?
If we back up and take a look at the bigger picture, this is a very powerful down trend. We have seen previous attempts to find a bottom but even though they pulled above the 200 day, they didn’t have the strength to continue. Take a look at the chart and see what happened to the last bounce back in March.
There is an old trading adage, don’t try to catch a falling knife. This is a great example of this. Wait for this to play out and confirm the trend has reversed. Lee Gettess does a great job out revealing how to spot when a trend has run out of steam and it works with downtrends as well as uptrends. In this market, it is definitely worth taking a look at. Just click here.
Keep learning and trade wisely,
Market Wealth Daily