The Good After intense selling on Wed, we had intense buying on Thu in expanding volume. This suggests that the 2640 support has efficiently played its role. Good probability of a continuation, subject to payroll numbers.
The Bad The market remains fragile due to harm done in October. A breach below 2640 is unlikely for now in my opinion. Such breach would reverse current positive stance.
The Strategy TARGET 1: 2760 TRAGET 2: 2812 SUPPORT: 2640 Remain prudent due to current market fragility. Buy high Beta names to play the technical rebound. Liquidate and move to cash upon breach/close below 2640.
Comment
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Stop at 2640 has been reached, with the market closing below it two days in a row. However, yesterday's strong close and bullish hammer suggest there could be a rebound/reversal from here. Market remains weak.