Stocks have retreated to the lower bound of the range, testing the 4200 handle again. Currently, we are finding support just above our level at 4272. We are seeing green triangles on the KRI, suggesting we are finding good support at these levels. Watch the risk sentiment in the news, because if we see more momentum towards open, we could potentially break down to 4245, the next level down. If not, we could test the upper bound of this range again, which is about 4380. The midpoint is at about 4327, so keep this in mind for a potential mean reversion trade. The Kovach OBV has leveled off, and if we are to break either of these levels, we need to see momentum come through.
Comment:
Risk sentiment in the markets is turning risk-off. We appear to be seeing a rejection at 4327.
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