Last time we saw the SPX getting that further away from the 200 daily MA, we saw a strong relief rally bounce.
Now we are approaching a similar range from the 200 daily MA and we saw one of the strongest buy days with big volume in the previous session.
First level to clear is the 3730-3780$ where we have a lot of issues:
1. POC
2. Gap fill that could act as a resistance
3. Previous level of support
I have added a projection of a diamond pattern that is still not confirmed.
If we could see a bounce on the projected (dotted) line, the bottom diamond pattern proofs to the 4080$ gap fill level, where
the slopping 200 Daily MA would probably be at that time to act as a strong resistance.
While a lot of economic headwinds are there for this scenario to fully play out, seasonality is with us, and earnings season is on the horizon.
Now we are approaching a similar range from the 200 daily MA and we saw one of the strongest buy days with big volume in the previous session.
First level to clear is the 3730-3780$ where we have a lot of issues:
1. POC
2. Gap fill that could act as a resistance
3. Previous level of support
I have added a projection of a diamond pattern that is still not confirmed.
If we could see a bounce on the projected (dotted) line, the bottom diamond pattern proofs to the 4080$ gap fill level, where
the slopping 200 Daily MA would probably be at that time to act as a strong resistance.
While a lot of economic headwinds are there for this scenario to fully play out, seasonality is with us, and earnings season is on the horizon.