Cautiously Optimistic of Stocks
Stocks saw some incredible volatility yesterday. No doubt some of this is related to the GameStop saga. The S&P 500 has completely retraced the bear move only to give back thse gains and settle around a cluster of levels beginning at 3737. It is likely to find support here, at least for the moment, which seems to be verified over the past few hours. If it breaks further down it will have support at 3714. the next level is in the 3600 handle at 3694. The Kovach OBV has whipsawed which is extremely rare. Usually this indicator goes with the overall trend. This is telling us that there is an extreme amount of momentum in stocks lately, in both directions: selling and buying. It is difficult to determine the overall direction of stocks, however we still remain cautiously bullish for now.
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