S&P 500 Breaks Down Into Channel – Bounces of First Support Level

S&P 500 Breaks Down Into Channel – Bounces of First Support Level
December 10 23:32 2018 Print This Article

That didn’t take long as the S&P 500 cracked down into that long-term ascending channel I pointed out in my last post.  Once it did that the next thing to eye was support levels and boy did it bounce hard off of it!

As you can see on the daily time frame – the index dropped hard below the ascending line and then bounced off the 2580 area of support I have designated with the horizontal line.   The prior two violent drops in the index this year rallied off this level so it would have been a surprise if we did not see some kind of fight from the buyers at that level.

Reversal candle, but will we reverse

That is one hell of a reversal candle we got today and usually a signal to get long for atleast more of a bounce.  However, I’m still bearish for now so I will sit on the sideline and hope any bounce creates another opportunity to short.

The short I was in since Friday morning I covered late this morning at 2,605, thankfully.  Now I sit and wait for my next chance.  Note, this is my opinion and what I’m doing, be sure to do what is right for you.

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scaredycatguide
scaredycatguide

Providing Investing Education for the Risk Adverse

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