The market experienced a tech-driven bounce, but the $DJIA(.DJI)$ remains weak. The $S&P 500(.SPX)$ closed the week with a rejection at $5,110 and the 20-day moving average.
The previous SPX post shows those lines, if these resistance levels for the #SP500 hold true, it might indicate the beginning of a second leg down.
This chart highlights in blue arrows the initial bounce. The green arrows point to the actual market bottom.
The Question: December 2022 Redux or August 2023 Repeat?
The key question is whether this situation will unfold similarly to August 2023, where a bounce preceded a deeper decline, or if it will resemble December 2022, where the bounce marked a more sustained recovery.
Both cases before reaching the "Extreme Fear" zone.
$5110 will provide part of the answer next week.
Posted before this chart: $Meta Platforms, Inc.(META)$ , the potential gap fill; and $Alphabet(GOOG)$ $Alphabet(GOOGL)$ , also leaving some gaps opened.
https://twitter.com/SmartReversals/status/1784246407223803998
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