The initial shock in February and March's low have been tempered by the market's rise in April. Spending less time below critical trendlines and resistance levels, as is currently the case, is constructive for a move higher.
The clear corrective thrust lower continues to take shape with great uncertainty. As we enter May risks are evenly balanced near term and levels are attractive for long term investment. The recent MACD and Signal Line cross of zero is comforting for continued upward prices. However, a solidifying confirmation of the same indicator using a weekly chart (not shown) has yet to occur.
Speculative odds are tilted for the weekly chart to confirm higher levels despite seasonal headwind in May. Any price movement below the original trendlines would indicate added caution. Moves above 50 and 200 MA levels would indicate otherwise. Outcomes for business re-openings and economic activity will shape trend contours for May.
A wave 4 or wave 2 pattern is expected with plenty of time to adjust for higher levels, whether by adding during declines or waiting for an upward turn. Using all indicators is a preferred and comprehensive approach for navigating forward. Weekly perspective helps with defining the bigger picture when daily volatility is high.