Ref. yesterday’s post with the oh so pensive trader with a southward pointing chart over his shoulder.
Today it is a brighter picture as two calm gentlemen go about their business as usual. Again, you can click the graphic if you want to see CNBC’s breakdown of this morning’s events. I see Cramer is on the right side of the contrarian setup this morning, unless maybe they just slapped that in there after the futures had shown their bullish cards.
Anyway, SPX is merely bouncing to fill yesterday’s gap down after filling the early December gap up. There is still cause for concern about the October gap down there below 4000, near the up-trending SMA 200. Yet, the seasonal average is positive, so there’s that. SPX below the SMA 50 is vulnerable. It’s a bullish, still up-trending market but the major part of that uptrend is at the SMA 200.
As also linked at top, yesterday I was thinking back to the Christmas Eve (2018) Massacre and wondering if we’d get that kind of a flush and reversal event. It seems almost too obvious. Enter today’s bullish expression to muck up the works. Watch SPX at the point where the EMAs 10 & 20 are dropping to meet the SMA 50, a point SPX resides below.
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