Well, things looked a bit grim during the week, and I had several worried emails from readers – is it serious? should we get out?
Things can get worrying, that’s why it is important to keep our emotions in check. I get that it can look scary from time to time. I really do. But we have to keep cool and look at the situation objectively.
When we look at the ITM rules we were nowhere near the 10/200 death cross (the pink line and the turquoise line in the chart below). We’re still up over 90% so ITM is not doing badly at all!
And to show how traders tend to do things in herds – look at the ellipses in the chart below: three times this year the SPY has bounced neatly off the 50-day moving average.
Coincidence? I think not!
