- Yesterday closed as a bull bar in its upper half with a long tail above.
- We said that the parabolic wedge (3 pushes - 28 Feb, 7 Mar, and 13 Mar). That increases the odds of a minor pullback. The pullback is currently underway.
- The bulls want the market to form a 2 legged sideways to up pullback.
- They need to create credible buying pressure - consecutive bull bars closing near their highs.
- Traders will see if they can continue to create follow-through buying.
- The next target for the bulls are the 20-day EMA or the January 13 low.
- For today, the bulls want a retest of yesterday's (Mar 17) high followed by another leg up.
- The bears see any pullback as minor. They expect at least a small second leg sideways to down to retest the Mar 13 low after the pullback phase.
- The 9-bar bear microchannel on the daily chart and the 4-bar bear microchannel on the weekly chart increases the odds of sellers above the first pullback. This remains true.
- That means the first pullback would likely only be minor.
- Because of the climactic selloff and parabolic wedge, the market may try to form a minor pullback which is currently underway.
- Traders will see the strength of the pullback. If it is strong (consecutive bull bars closing near their highs), they may look for a retest of the breakout point - Jan 13 low.
- If the pullback lacks follow-through buying (overlapping candlesticks, doji bars, bear bars, long tails above bars), the odds of another leg down increases and traders will sell the pullback.
- For now, traders will see if the bulls can create a strong retest of yesterday's (Mar 17) high followed by a breakout above.
- Or will the retest lacks follow-through buying, stalling around or below yesterday's high area? If this is the case, the market may selloff in the second half of the day.
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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.