/biz/ - Business & Finance

As I mentioned last week, crayons pointed to 325.x as a zone the market was heading towards and that it was also a decent spot to start loading back in. While the sell-off in the morning looked alarming from any metric, I think it was justified from a gap-down and weak hands bailing to continue a sell-off. The important price from my perspective was that the 322.5 support was defended (yellow line), as it is the last major support before a huge drop to the 310s (orange).

Indicators suggest that there is still ample buying room before things get frothy again. From the perspective of /ES I would be watching how long it takes to get to 3328, and on SPY, to see if there's appetite to fully back-fill up to 330.6. While the overall trend is bullish and short-term sentiment is neutral to good with bullish divergences, I would still play cautiously as this has been one of the longer and more volatile price movements on any of the recent drops, suggesting that reaching the previous highs may not be as straightforward as previous. But again, in simple terms: the 325.x ranges were an objective zone to play a bounce. Indicators are not on the bear's side short-term because of the sell-off the market has been going through, but for now, they would want to see rejection at about 328.8 and 322.5 taken out cleanly on the next downturn. If 322.5 goes, I would watch for the next support at about 318.6, then a swing down to something in the 313.x range which would be the next clear battlezone.

keep ur buttholes tite n outta site

white power