That is some daily candlestick there. Despite price being outside of yesterday's range in both directions by a considerable margin SPX ended the day unchanged. This leaves the flip to up in the trend indicator still needing confirmation. SPX went down to the 100 SMA first thing this morning after the bears hammered the gap up. However, the bulls came roaring back and pushed the market to new highs for the day. Once it got close to the 50 SMA the bears took over into the close. Price is stuck between those two moving averages for the moment. The longer we stay here the bigger the break out should be. I still think that will be down, but we will see. Lets look at the 60 minute SPY chart.
The wild sell off took SPY down to the hourly 50 SMA where the bulls showed up. However, at the end of the day SPY closed below the 18 SMA. The bears need to confirm the break of the 18 by getting an hourly close below the low of the last bar. The bulls need to get an hourly close above the 18 SMA. Given today's wild action I guess I won't try to predict which of those actions happen first, LOL.
The next big move will be determined by the break of either the 50 SMA above or the 100 SMA below. Until that happens try not to get chopped up.
Have a great weekend all.
Bob
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