Bear market rally or stock market bottom? Form your trading plan with Wyckoff method [Video]

Ming Jong Tey Independent Analyst

Has the stock market hit the bottom or is this a bear market rally to trap the bull? The bullish momentum bar reacted the CPI on last Thursday marked a significant milestone in S&P 500.

Watch the video to find out how you can form a sound trading plan with the Wyckoff trading method to ride on the trend on either direction at these key levels.

The bullish setup vs. the bearish setup is 455 to 57 from the screenshot of my stock screener below.

It is essential to pay attention to the price action and volume in S&P 500 and to identify a Wyckoff change of character for early detection of potential trend change.

Meanwhile, these are many outperforming stocks trending up as shown up in the stock screener despite the choppiness formed in the indices. Do look for strong relative strength as shown up in the individual stocks when identifying the winning stocks for swing trading.

Author

Ming Jong Tey

Independent Analyst

Ming Jong Tey has been trading since 2008. He started his learning journey from technical analysis (indicators, Fibonacci, etc...) to value investing. Throughout his journey, he develops an interest in price action with chart pattern trading.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.