Is it too late to jump into SPX after this ATH?

[Marcus Vance 65]

Hey everyone, I’m pretty new to trading and I’ve been trying to follow the S&P 500 lately. I just saw the news that SPX hit a brand new all-time high after bouncing off what people are calling a buying zone. NGL I’m feeling some serious FOMO right now because I saw it dipping a bit recently but I was way too scared to do anything. Now it’s soaring and I’m just sitting here watching from the sidelines.

I keep seeing stuff about Elliott Wave analysis and three-wave declines, but it’s honestly pretty confusing for someone just starting out. I really want to understand how experienced traders knew that specific spot was the place to buy instead of it just crashing further. Is it still worth trying to scalp some gains here or should I just hold off and wait for another pullback? I would love some advice from the pros here so I don't accidentally blow my small account by chasing the pump at the absolute peak.

Do you think there’s another entry coming soon or are we just mooning from here?

 

[Zakami Ng]

Man, I wouldn't touch it right here if you're looking for a quick entry. If you pull up the daily chart, we're seeing some nasty bearish RSI divergence forming while the price is tapping these new highs. Doesn't feel like a healthy breakout to me.

I'm personally waiting for the MACD to show a clean bearish crossover before I even think about sizing up a short, or at least a decent pullback to the 20-day MA. Chasing ATHs is usually how people get chopped up. Patience is key.

 

[Liam Walker]

@Zakami Ng honestly, every time I see people bringing up RSI divergence at an ATH, I just know we’re going to melt up another 5% before the week is even out. You’re waiting for a MACD crossover while the market is busy pricing in the next leg of liquidity—classic trap. The more people that get scared by these "nasty" indicators, the more fuel there is to keep the trend ripping. I’m long and I’m definitely not selling into this strength just because the chart looks "overbought." Good luck waiting for that 20-day MA while the rest of us actually make some money.

 

[EthanCole]

Man, @Liam Walker, you’re not wrong about the liquidity, but you’re playing with fire. I’ve been trading the 4H and daily timeframes for years, and trying to catch the tail end of a momentum blow-off top is exactly how you lose your entire year's worth of gains in two bad days.

@Zakami Ng has the right idea about keeping your powder dry. I’m not saying we’re due for a crash tomorrow, but chasing a vertical candle on the daily chart is just gambling, not trading. If it rips another 5% without you, so be it. There will always be another setup that doesn't require you to bet against basic mean reversion. Patience pays way better than FOMO.

 

[LeoSterling]

chasing a vertical candle on the daily chart is just gambling, not trading. If it rips another 5% without you, so be it.

@EthanCole "mean reversion" is how you stay poor buddy. Just market buy the ATH and send it. If sl hits, we go again. Sitting on the sidelines watching god candles is a fast track to midcurve depression. 100x or nothing.