The bounce is here, but does it have staying power?
While its always interesting to see uninteresting indexes like SPY relocation over 3% in one day, at this moment its still a weak attempt to get back some of what its lost. Considering SPY was trading at 303.50 recently, the 3% bounce to 280 does not suggest much.
Thats the big question after a 3 day totally free fall to support that was preceded by a historic six month bullish momentum run. As we expected, the market is striving to bounce off assembling assistance levels, particularly, cost action and the 50 day moving average.
— Paul J. Singh (@PaulJSingh) September 9, 2020
The marketplace still has work to do to return on a momentum trend. Hence, for traders, its not offering us any terrific signal yet. The finest thing we can do right now is workout care up until we get more hints.
Thats what we discuss in todays video. I examine the 2 essential signals for getting in either long or short and reivew some stocks and sectors that remain in play.