In yesterday’s Market Direction note we see that price had pulled back to a significant area of potential support. After a day of sideways trading, investors are no closer to knowing whether support will hold or not, but at least it has not failed.
SPY – S&P 500 ETF
Looking at the bigger picture here – price is still well above major support and with this latest pull back to the late Feb swing lows (ignore spike on SPY here), price has retreated to the 50% level of the range. Frequently markets will find support – lasting or not – at the 50% retracement. If buyers are not inclined to come in here, this weekly chart shows us the obvious next major target below.
There certainly is still reason to consider the long side here so we’ll have to stalk both long and short.
05.03.18 09:08 #