S&P index fell to -30.25% from the high. and got close to the December 2019 low
The question for the S&P is:
"Is a 30.25% decline from the high good enough?"
Let me rephrase that:
"Is a -30.25% decline from the high good enough for today?"
That is where the price bottomed today on the dip. That low got within the 18 points of the low from December 2018 as well.
I - nor anyone - doesn't know the answer to that question with certainty. What we do perhaps know is that it may not be a bad area to put in a temporary bottom. The next target on the weekly chart above on the topside comes in at 2532.69. That was a low going back to 2018 that the market should look as a topside hurdle.
Looking at the hourly chart below, the low price from last Thursday, was at 2478.86. Getting above that level might be a small victory for the buyers. The high price today could only reached 2463.54 so far.
It is baby steps when you're trying to pick a bottom. It is also not good for your health especially in this environment. However, if risk can be defined at levels that make sense to you and "the market" agrees, it allows for a "trade" at least. Having said that, as important as the stop, is the targets. So map out the upside targets. Getting and staying above, gives buyers more confidence and sometimes leads to short covering too (at least for a day.....maybe).
