• The market traded lower earlier in the day. The market then reversed higher for most of the day around noon time. The SPX then pulled back off its high in the final 30 minutes of the day.
• The bulls see the market trading in a broad bull channel and want the move to continue for months. They want an endless pullback bull trend.
• They want a retest of the all-time high (Dec 6) followed by a breakout and trend resumption. They see the current move as a bull leg within the trading range.
• They want a reversal from a double bottom bull flag (Jan 13 and Mar 4) and a wedge (Feb 25, Feb 28, and Mar 4).
• They hope the bottom of the 22-week trading range will act as support. They want a failed breakout below the January 13 low.
• At the least, they want a retest of the middle of the trading range (around the 20-day EMA).
• If the market trades lower, they want the November 4 or October 3 low to act as support.
• The bears got a reversal from a higher high major trend reversal, a wedge top (Dec 6, Jan 24, and Feb 19), and a smaller double top (Jan 24 and Feb 19).
• They see the market as being in a 22-week trading range.
• They hope to get a bear leg to retest the January 13 low followed by a breakout below. They got it yesterday (Mar 4).
• Next, the bears want a breakout below the January 13 low, followed by a measured move based on the height of the 22-week trading range.
• If the market trades higher, they want the bear trend line or the 20-day EMA to act as resistance.
• They want at least a small second leg sideways to down to retest the March 4 low.
• So far, the market is trading in a 22-week trading range.
• The SPX broke below the January 13 low yesterday (Mar 4) and traders want to see if there are any follow-through selling.
• Or will the market form a pullback, followed by a second leg sideways to down to retest the March 4 low after that?
• Traders may BLSH (Buy Low, Sell High) within the trading range until there is a breakout from either direction with follow-through buying/selling.
• The bears must create a strong breakout below the January 13 low with follow-through selling to convince traders a breakout could be underway.
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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.