S&P 500 Breaks Down Into Channel - Bounces of First Support Level
That didn't take long as the S&P 500 cracked down into that long-term ascending channel I pointed out in my last post. Once it did that the next thing to eye was support levels and boy did it bounce hard off of it!
As you can see on the daily time frame - the index dropped hard below the ascending line and then bounced off the 2580 area of support I have designated with the horizontal line. The prior two violent drops in the index this year rallied off this level so it would have been a surprise if we did not see some kind of fight from the buyers at that level.
Reversal candle, but will we reverse
That is one hell of a reversal candle we got today and usually a signal to get long for atleast more of a bounce. However, I'm still bearish for now so I will sit on the sideline and hope any bounce creates another opportunity to short.
The short I was in since Friday morning I covered late this morning at 2,605, thankfully. Now I sit and wait for my next chance. Note, this is my opinion and what I'm doing, be sure to do what is right for you.
Published by ScaredyCatGuide
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The next round of economic data is going to be interesting, can't help but feel the market is waiting for it + more certainty around China/US trade relations to decide which way the market will go.
Yep, the trade relations are a big wild card.
The big investment wall street guys will start calling this the bottom to get retail investors back in while they unload before the next leg down...
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They are herding the sheep as we speak!
I’m kinda upset i didn’t long this hammer as I am usually early so i waited (for a trade) lol, meaning we rip up 700+ points tomorrow
Yeah, I'm hoping we get that big rip tomorrow so I can start looking for short entries again ;-)
Classic, we are halfway there Pre market ;)
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