One should always look at the market from some distance to understand what it is trying to do because there is a tendency to get consumed by daily noise and mindless opinion based on feelings.
This is how S&P500 looks right now on daily chart
The above chart looks bullish. S&P500 since last one month has been holding 20 day moving average despite all negatives and on Friday - it seems to have formed a double dip at that moving average which suggests a bullish short covering move might happen this week. Now, the market setup does not guarantee the future. It only indicates what might happen. All we can say - there is no need to worry about Bears as long as S&P500 trades above 20 dma.
Here's two key takeaway from the above chart:
1. S&P500 will continue to find buyers as long as it trades above 20 dma
2. There will be short-term panic if S&P500 declines below 20 dma
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers