Predictably bounced to the previously mentioned 278-280 area, but....
We just gapped over the 200DMA and breached the "sacred" level of 280... The problem is that this level has been more often than not a trap going the other direction. Notice how we did not close above the May 13 close of 280.86... If we can get a daily close above that level, then we're probably headed back up to a .618 retrace of the correction and a retest of the 32DMA (around 286).
But if we head back down below 280 to retest the 200DMA, then we're likely looking at another leg down.
AFed related rally is usually good for at least a couple days so I think we hit at least the 2nd price target of the bullish crab mentioned in the previous post... 283-284 or so. But with no sign of daily bullish divergence on yesterday's bottom, it feels temporary and the downtrend will likely remain in place until trade talks are back on.
We just gapped over the 200DMA and breached the "sacred" level of 280... The problem is that this level has been more often than not a trap going the other direction. Notice how we did not close above the May 13 close of 280.86... If we can get a daily close above that level, then we're probably headed back up to a .618 retrace of the correction and a retest of the 32DMA (around 286).
But if we head back down below 280 to retest the 200DMA, then we're likely looking at another leg down.
AFed related rally is usually good for at least a couple days so I think we hit at least the 2nd price target of the bullish crab mentioned in the previous post... 283-284 or so. But with no sign of daily bullish divergence on yesterday's bottom, it feels temporary and the downtrend will likely remain in place until trade talks are back on.
Comment:
Looks like we're going to be in a corrective wave for a day or 2...
