Spy

Yellow line, trendline support from December lows.

White wave- 21ema..


Today we are gapping down towards are 21ema and trendline support around 403.90 - 404.


I expect a bounce here and a range trade between 404 -408 until CPI Tuesday..

If we break trendline support here we're headed back below 400 to 200sma at around 393-395.


Market should choose direction after Mich inflation report around 10..

Of all the big name techs that have rallied since Jan, only Tsla and NVDA still have there trendline support.. that's pretty bearish.

If you wish to go Long, wait for the 21ema test (It will test it).. place a stop at 403.

If you wish to go short , wait for a break below 403 ..


What I am seeing on the vix is short term overbought.. outside daily bband.. Hourly CCI overbought

Good luck

Comment:

Dow bounced off that 50sma with the help of energy and health, mean while Nasdaq sells and that leaves spy chopping in the middle.

Still grinding on the support from my previous post .

Might see similar price action like this until CPI. Dow jones is not giving up that 50sma