Several indicators are pointing to a bounce in SPX: * it's well outside of its bollinger band * RSI is just under 40 - usually we see a bounce at this level * The last candle ran away from the 8-day EMA
The attraction of the bounce will be 8-day EMA. It's entirely possible that this bounce will be sold by the end of the session. Still, that's at least 25 point move in SPX we're talking about.
Not sure I follow you can you be a bit more descriptive as I do agree we will have a bounce as well.
You mean? -> "this bounce will be sold by the end of the session"
You mean? -> bounce will be 8-day EMA
Thanks.
adammska
⋅
See that recent Thursday candlestick? That's what I have in mind.
Trance-Man
⋅
Thanks, I think I see what you mean. What level will it goto do you think it will rise to, of course in your opinion (S&P)?
adammska
⋅
I see two main possibilities:
* this bounce fails around 2040, and we go futher down.
* we close above 8 EMA, and proceed to finish December near all time highs
Ideally I still want to see MACD turn negative in this correction, so I'm biased in favor of more downside.
You mean? -> "this bounce will be sold by the end of the session"
You mean? -> bounce will be 8-day EMA
Thanks.