Testing a pivotal short term support,the index was rejected at this support. While stocks above 20-days SMA are near 20 percent, hints we might be short term oversold. A bounce for a retest of the 50-days SMA and 1810-1815 broken-support turned resistance is likely. That is where I look to short for a longer term bearish wave.
Where did you get the stocks above 20-day SMA index, is there also a 10 or 50? All your chart analyses are great btw, there always clean and concise. What do you think about SPXU or SQQQ when the index hits the 1810-1815 area and would you change your bearish outlook if it ends up closing over 1810-1815?
Thank u for ur input. I have a fundamental bearish view of markets, which make it hard for me to negate my bearish bias. However, would assess if we get there, i will look for participation of different sectors, also how tapering is affecting sentiment and economic conditions.
Agree.. Im calling for 1820. But also a word of caution, if the level gives way, we could bid goodbye to the correction and possibly a new high trapping all the bears. I think a safer play (atleast for me) is to look for a reversal pattern near 1820 and short from 1800. Just my two cents.