The S&P continued to display plenty of volatility last week, where we saw a strong
move to the downside, breaking through significant levels of support.
Price did appear as though it was going to continue its descent, but the buyers were
able to reverse the direction of the move, ending Friday with a big bullish candle
on the daily timeframe.
The 50 simple moving average, which held as support over the past few weeks,
couldn’t take the weight of price and this support level failed.
However, looking at the reversal candle last week, which closed with a bullish body,
we may well see a push back above the 50 simple moving average.
As there is a lot of volatility in the markets, it is hard to be sure if the bull trend will
resume or whether the bears will take over, so we will continue to stand aside and
preserve our capital.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
move to the downside, breaking through significant levels of support.
Price did appear as though it was going to continue its descent, but the buyers were
able to reverse the direction of the move, ending Friday with a big bullish candle
on the daily timeframe.
The 50 simple moving average, which held as support over the past few weeks,
couldn’t take the weight of price and this support level failed.
However, looking at the reversal candle last week, which closed with a bullish body,
we may well see a push back above the 50 simple moving average.
As there is a lot of volatility in the markets, it is hard to be sure if the bull trend will
resume or whether the bears will take over, so we will continue to stand aside and
preserve our capital.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
