Do not chase this rally. Instead, book profits and move to cash while we remain inside the target resistance level on the S&P 500.
If you are up in an individual stock, you should book profits and move to the safety of cash.
Below is a much better consolidation entry that we would like to see on the S&P 500 for a long entry (dotted green line):
A much better entry than chasing a market higher is to wait for a pullback or consolidation period to enter. In this case we would like to see if the S&P 500 can break above 2,640 resistance, then fall back and test that 2,640 level again as support (previous resistance becomes support signals continuation of uptrend), and then it bounces off that level and exceeds the previous high.
Remember, the market exists to screw the greatest number of retail traders at any given time. Imagine how evil it would be to create a FOMO environment where retail traders frantically chase the move higher, only to have the market do a hard reversal by the end of the week as institutional traders and money managers scoop the FOMO money off the table. Don’t play their game, play yours.