S&P 500: Don’t Miss Out on This Bounce’s Profit Potential
US500
-0.27%
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It looked like yesterday would be another ugly session for the S&P 500 as the index skidded another -0.8% in midday trade. But just when all hope was lost, the index bounced hard, erasing all those losses over a handful of minutes. 
S&P 500 Index-Daily Chart
While it is definitely premature to claim September’s selloff is over, when it ends, this is what it will look like.
As I wrote Tuesday evening, I was looking for a bounce, and yesterday afternoon’s pop definitely qualifies:
I don’t know if yesterday was the true capitulation bottom I’ve been waiting for, but I do know that buying the bounce is the best trade a person could make here.
By getting in early, a savvy trader is already sitting on a profit cushion and moving their stop up to their entry points, making this a low-risk trade.
If the selloff resumes today, no big deal, we get out near our stops, no harm, no foul. But if the bounce continues, a wave of profits will come rolling in hard and fast. Low-risk, high-reward trades are what dreams are made of.
As I said above, it is way too early to claim the selloff is over, but this is the best buying opportunity we’ve had in a while.
And if this bounce doesn’t work, no big deal, we get out and try again next time. One of these is going to work spectacularly well, and we don’t want to miss it.
