With Ben hinting to a new QE market rallied today, after plunging in the morning. such reversal days should always alert traders about a possible trend change. Market is still extremelly vulnerable on long term but the intermediate time frame is slightly bullish now. As you see SPX managed to climb above SMA 120 today and EMAs gave a bullish crossing on hourly chart.
However, keep in mind that this time frame gave a few whip-saws in the last 4-5 months. Saying that, on two hourly chart that I am also watching things don't look so bullish, EMAs are not even touching.
If a rally is starting here how far could it go? I would assume something in the 1,200-1,220 area where SMA 75 on weekly chart resides. However, if SPX manage to climb above SMA 75 and EMA 20 does not cross EMA 40 on weekly chart the long term bearish momentum is going to cease.
However, keep in mind that this time frame gave a few whip-saws in the last 4-5 months. Saying that, on two hourly chart that I am also watching things don't look so bullish, EMAs are not even touching.
If a rally is starting here how far could it go? I would assume something in the 1,200-1,220 area where SMA 75 on weekly chart resides. However, if SPX manage to climb above SMA 75 and EMA 20 does not cross EMA 40 on weekly chart the long term bearish momentum is going to cease.
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