Charting the S&P 500: Did the Bulls Pull Off the 'Great Escape'?
Stocks finished the past week in the green but needed some extra lift.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Bull and Bear Wrestling in Suits
If you saw the opening print last Sunday evening (3/29) you know the markets were headed for a rough day. It certainly was a weak session but finished well off the lows.
Then came Tuesday, an historic day where some potentially positive news on the Iran war front vaulted the indexes upward around 3%, and even crude oil sharply lower — a different situation from prior days. It seems the low from Monday is going to hold here, but then we really are not sure.
If we examine the candles in the top chart we notice the low last week is very close to the low the prior week, when the candles turned amber color. That is important as buyers are stepping up at those lower levels, call it 6300-6350. If the markets push down there again we will see if it holds firm or if these dip buyers are "weak hands."
As for the bears, it was another opportunity squandered and with earnings season just around the corner, they could be left in the dust. As a veteran trader friend of mine once posed to me, "Do you really want to be short during earnings season?"
The indicators remain bearish but there are green shoots. We'll see if a higher high, higher low can be achieved this week, which would be the first one in since January.
