After today’s savage move down, the big question is where is the market going? This will have a bearing on whether we focus on bull flags or bear flags.
From a news point of view … who knows! As Flag-Traders we like to stay out of news-driven markets, but we have to wait a bit longer for the full details of the stimulus package, and then the market’s reaction to it.
From a technical point of view if you look at the chart below, a break of the lower trendline would indicate the broader markets slumping, which means we’ll be more inclined to focus on bear flags. A break of either of the higher trendlines would give some hope to the markets, and have us looking again at bull flags, many of which did very nicely up until yesterday’s hiccup.
Again, we never try to predict … but it’s worth keeping an eye on the S&P500 over the next few days.
If you only have access to web charts and want to keep an eye on things, just type in ^GSPC into the Yahoo Finance ticker symbol area. Click on this link here to see the S&P500 chart on Yahoo Finance.
All the best