Dear readers,
The past two weeks have been extremely hectic where I have raised my equity allocation from around 65% to 150%. What has caused me to raise my equity allocation?
Read on to find out more.
S&P500 Index
Two weeks ago, with reference to
Chart 1 below, I mentioned the following on the S&P500:
- a) I prefer the S&P500 to wait and observe whether S&P500 retreat and test the resistance turned support region 1,990 – 2,000 before moving higher;
–> S&P500 first hit around 2,021 on 12 & 13 Oct before it weakened to touch an intraday low of 1,991 on 14 Oct. This is in line with my preference. It subsequently moved higher (see point b below).
- b) A possible double bottom formation may be in the making with the neckline at 2,021 but needs to observe whether there is a sustained break.
–> S&P500 broke the neckline ......