In Search for a Catalyst

Despite the recent recovery in markets, anxiety is still felt. What happened the past days was a gap fill from November 9 (marked red) and a bounce from this level. We are currently in a state of indecision, waiting for a new catalyst to give us direction. Accordingly, the SPY could not accomplish more than an inside Doji today.

By looking at the intraday activity, we can observe a cautious uptrend toward resistance areas. These are especially the 20 and 50 EMA in the daily chart (also visible in the Dow Jones). If bears are able to defend the resistance areas and break the small uptrend in that process, we should get more defensive.

Closing above the moving averages, however, can be an attempt to reach for January’s highs.

Category: Stock Market