Meta Strategy Trading Portfolio – Probability Map Update.

An Opportune Bear Trap!

The S&P dropped to my targeted key support area and swiftly recovered an important trendline last week, which turned out to be an excellent buying opportunity.

Failed moves tend to leave short-term positioning trapped, which now gives stocks a chance to take a successful run at an area of heavy overhead resistance.

Because big, medium-term short positions are also caught on the wrong foot, this could lead to a larger unwind, creating a powerful feedback loop of positive flows that continue to drive the market up over the next months.

Clearing the 50% bear-market retracement area is an important stepping stone on the way to recovery – mere bear-market rallies rarely overcome that threshold.