The correction in the markets last week may appear steep & violent, especially for some stocks. However, on the bigger scale of things, SPX is still looking like a "normal" correction (within a bull trend) so far.
In fact, a few factors could be aligning for a possible bounce in the near term:
1.SPX closed a "dragon-fly" candlestick last Friday, signifying some buying towards the close of the session
2.A bullish divergence between price and RSI could be emerging
3.So far, the magnitude of the current retracement (CD) is similar to that of the previous retracement (AB), ie CD swing is the 100% fibonacci extension of AB, projected from point C.
4. The pullback to D is 50% fib retracement of the BC upswing (still within reasonable limits of a "correction")
There is no real reason "panic" yet, unless we have SPX going below 4000 (worst case 3950) again for a start.
Let's see how this week will play out.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
In fact, a few factors could be aligning for a possible bounce in the near term:
1.SPX closed a "dragon-fly" candlestick last Friday, signifying some buying towards the close of the session
2.A bullish divergence between price and RSI could be emerging
3.So far, the magnitude of the current retracement (CD) is similar to that of the previous retracement (AB), ie CD swing is the 100% fibonacci extension of AB, projected from point C.
4. The pullback to D is 50% fib retracement of the BC upswing (still within reasonable limits of a "correction")
There is no real reason "panic" yet, unless we have SPX going below 4000 (worst case 3950) again for a start.
Let's see how this week will play out.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!