The chart below shows the SPY, notice the light volume of the early rebound. I have two charts prepared just for today's trading for you as a guide.
If we rally today, the bulls will face some resistance at the 80 or 84 level. In the event that, there is any attempt to push stocks higher....the bulls will have to get pass 84.4 to show that this is the bottom. But I think this is unlikely because today is Friday and nobody wants to hold stocks over the weekend. I am posting this chart to be prepared for any big surprises.
Due to weak market sentiments, I think the chart below is another likely scenario. In the event that the market wish to push lower, I see the two possible levels of support as 71.15 or 67.65.
Kindly note that these charts are only for today. I will make another update before Monday.
Price and volume action is extremely important to see what happens on Monday.
Strategy: Day Trade only. We are very close to a possible support for a strong rebound.
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