V-Shaped Recovery for Stocks??
After their meltdown yesterday (second worst in history by some sources), stocks have pared back losses, retracing just above the 50% Fibonacci retracement level of the entire move. Indeed, we appear to be seeing the typical 'V-shaped recovery'. We will see if further developments in the Evergrande saga can sustain current levels or if we will have another selloff. It looks like 4408 is providing resistance, confirmed by a red triangle on the KRI indicator. The Kovach OBV is rounding upwards, but not quite proportional to the recovery rally so we could see further resistance here. Watch for conviction at open to determine if we will continue to retrace this selloff, or if selling will continue. We could also establish value at current levels as the markets digest more news.
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