S&P 500 continued to rally after the consolidation phase in early May 2020. The rally was strong with volume, and it gained 15.67% in 25 days. It was a good rally and most of the sectors follow the bull market to rally up. On 5th June, a gap up bullish bar with volume occurred and I was bullish at that time as it indicated a strong bull market.
As the trading days arrived on 9th June, the price action seems to be slowing down and I was expecting a correction that will fill up the gap-up day on 5th June. On 10th June, the lack of follow-through added my confident level of the correction is on the way. However, I did not expect a major correction as what is happening, I was only keeping myself alert on the major markets and reduce the risk of my trades.
Yesterday, 11th June 2020, S&P 500 gapped down -188.04 points and created a 4-days island above 3150 levels. The gap down means a strong bearish perspective from the market. The strong selling with high volume added the possibility of the selling might persist for another 2 to 3 days. Furthermore, breaking 3000 level support will bring the price action to the 2900 level.
As the market is the main driver, I advised my friends to sell their stocks to reduce the risks. In trading, we prefer to trade with the major markets. In other words, go long during the bull market and go short during the bear market. Trade safely.