The 200 dma on the S&P 500 held as stocks gapped to the upside and closed with big gains to start of the week.
DWCPF.png
S&P 500.png
So, we got the bounce. Now what? I would normally expect an extended move in the opposite direction after a week like last week and especially now that the S&P 500 tagged support. And while it may begin to bias to the upside again, I note that the Arms index is very low, which suggests a counter move in the very short term. That means we could move lower on Tuesday. If it does, it can still be interpreted as bullish as the volatility can mean that a bottom is forming.
The options are neutral for Tuesday.
For Tuesday, I'm thinking the market may probe lower again, but a bottom (for now) may be in. Longer term (maybe intermediate term), the market is prone to more selling.
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