S&P 500: How to Protect Your Profits in a Sideways Market

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Stocks Analysis by Jani Ziedins covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read Jani Ziedins's latest article on Investing.com

S&P 500 Index Daily Chart

Since the latest wave of selling wasn’t propelled by meaningful and unexpected headlines, it won’t go far and we are nearing the bottom.Taking profits a little early makes sure we are in the right spot to take advantage of the next trading opportunity, which is most likely buying the bounce Friday or early next week.

At this point, I don’t see this pattern changing any time soon. We need something dramatic to wake us from this sideways grind. I don’t know what that will be, but I will know it when I see it, and so far, I don’t see it.And when this dip finally bounces, don’t expect it to go far and take worthwhile profits off the table as soon as we have them because, just like last week, it won’t be long before those profits get away from anyone that gets greedy and holds too long.

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