The market will open lower today.
- - The bulls see this as a retest of the March 7 low.
- - They want a higher low followed but a higher low major trend reversal.
- - If the market breaks lower, they want a failed breakout followed by a reversal to close the day with a long tail or a bull body.
- - The bears want a continuation lower.
- - They need to create follow-through selling below the January 13 low to increase the odds of a measured move down which will take them near the 5400 area.
- - If the market trades higher, they want poor follow-through buying, followed by a second leg sideways to down to retest the current leg extreme low (now Mar 7).
- - The parabolic wedge increases the odds of a minor pullback. The move down is strong enough for traders to expect at least a small second leg sideways to down after any pullback.
- - If the market trades higher, traders will see the strength of the pullback. If it is weak and stalls around the bear trend line or the 20-day EMA, the odds of another leg down will increase.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.