SPX500: Spotting Corrections with The Force Index

Alexander Elder recommends using a 22-day EMA for trend identification and a 2-day Force Index to identify corrections. The trend is up when the 22-day EMA is moving higher, which means the 2-day Force Index would be used to identify short-term pullbacks for buying. The trend is down when the 22-day EMA is moving lower, which means the 2-day Force Index would be used to identify short-term bounces for selling.

Have a good weekend everyone. May The Force be with you.

Kommentar:

This is my follow up and clarification on my previous post. I do think we're approaching a correction. Maybe not a reversal yet, but there are signs of a correction coming. I do think SPX can still go to 2370 - 2400 area easily.