S&P bounced off 200 hour MA/50% retracement
In an earlier post, I outlined the support at the cluster of support in the S&P defined by the 200 hour MA, the low from December 11 and the 50% retracement. That area come in between 3633.46 and 3636.03. The low price reached 3636.48 and bounced. Nice hold and the sellers turned to buyers.
The price has now risen for 4 consecutive hourly bars and in the process, the price is back above the 100 and 50 hour MAs at 3683.16 and 3684.66. The high price just reached 3699.18 and has backed off a bit to 3694.90. Nevertheless, going from -72.93 to -14.51 points currently is a big turnaround
For the Nasdaq index it too is still negative but has retraced from a low that saw the price down -230 points at the low, to -21.23 points currently. The Dow went from -432.52 points to being up 51 points at the moment.
R-E-B-O-U-N-D.....
If the price of the S&P can now stay above the 50 and 100 hour MA, it is all systems go for the buyers. Move back below and the upside may lose some steam.
