S&P 500 to soar to new highs

<p>The S&amp;P 500 did not decline enough to change investors' mood, we are still in a mania and in this situation people will buy early. The BTI has been rising during the decline, a rising BTI means sentiment is bullish. This behaviour is an indication the bulls have regained control and the decline probably ended on 24 January.</p>
<p>Alternatively the bounce could be a fourth wave inside wave (c) of the decline, in this case there is another leg down before the rally resumes. However, this is now low probability because the rally is a bit large for a fourth wave. And if it rallies further it will overlap the bottom of the first wave which will cancel the fourh wave scenario. Chances are the decline ended at 4222 in three waves and the rally is start of a larger rally that will end at new highs in five waves.</p>
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<p><a href="https://www.bettertrader.co.uk/.a/6a0162ff9ddd58970d0282e141bb7d200b-pi"><img alt="SPX220202a" border="0" src="https://www.bettertrader.co.uk/.a/6a0162ff9ddd58970d0282e141bb7d200b-800wi" title="SPX220202a" /></a></p>
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<p>But the index is volatile, we could see another sharp pullback before the rally resumes (if the rally is a fourth wave). Buying or selling with a stop loss is risky. This is a market to trade without a stop loss, if I buy early and the decline extends I sit tight. I know many traders prefer to use a stop loss however if you are happy to trade without a stop loss (and if you don't take big bets), you can follow what I do with my position trading startegy.</p>
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