Can the bulls save the market in a vital spot?
In order for structure to flip bullish, the bulls will need to hold support here.
While structure remains bearish, stay open-minded as the market could easily switch directions. We want to remain neutral and catch the rip if the S&P 500 (SPY) does rally back to $390.
While the market is oversold, it isn’t enough to justify a rally. The market is considered oversold because it is trading over 2 average true range (ATR) moves below the 21 exponential moving average (EMA).
In the video above, we’ll review both perspectives: the path of least resistance to the downside and the potential short-term bullish structure change. We’ll take a look at our SNOW put debit spread opened in the Compounding Growth Mastery on Monday.
We’ll also identify areas to observe this week to see if there’s a greater likelihood for the market to flip bullish, including moving average crossovers as we’ve discussed recently.
Stay Focused!