As you can see, the market is still trying to mount a countertrend bounce. On January 24 buyers did seem ready to step and defend the 4250 level I highlighted last week, but if you look on the intraday the higher volume was on the down bars.
A key takeaway from the price and volume action is while we may go higher in the short term, the SP500 is in a downtrend and upside volume is weak. Until we see strong upside volume, prepare for more downside and for the SP500 to break below the 4250. If it breaks through on strong volume, it is probable we will see a fast move south with 3600 as the first target.
Short-term traders should look to fade the rally around 4500-4550.
Long-term traders should wait to build positions at lower levels.
A key takeaway from the price and volume action is while we may go higher in the short term, the SP500 is in a downtrend and upside volume is weak. Until we see strong upside volume, prepare for more downside and for the SP500 to break below the 4250. If it breaks through on strong volume, it is probable we will see a fast move south with 3600 as the first target.
Short-term traders should look to fade the rally around 4500-4550.
Long-term traders should wait to build positions at lower levels.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.