SPX 500 17 March Market Analysis
The weekly candlestick closed in its upper half with a long tail below.
The market formed a parabolic wedge (3 pushes - 28 Feb, 7 Mar, and 13 Mar). That increases the odds of a minor pullback.
The bulls want the market to form a 2 legged sideways to up pullback.
They need to create credible buying pressure - consecutive bull bars closing near their highs.
Until they can do that, traders may not want to buy aggressively.
The bears see any pullback as minor. They expect at least a small second leg sideways to down to retest the Mar 13 low.
The 9-bar bear microchannel on the daily chart and the 4-bar bear microchannel on the weekly chart increases the odds of sellers above the first pullback.
For now, because of the climactic selloff and parabolic wedge, the market may try to form a minor pullback.
Traders will see the strength of the buying pressure. If it is strong, they may look for a retest of the breakout point - Jan 13 low.
If the pullback lacks follow-through buying, the odds of another leg down increases and traders will sell the pullback.
