The bounce continues - as expected.
The question remains..how far? Considering the daily cycle - as noted last night, its VERY viable for the market to cycle upward for the next 5-7 trading days all the way into opex next Friday.
A bearish scenario would be that market at least moves no higher than the recent high of 1422..or preferably 1395/1405. That would be a nice lower high..and would be a fine set up for a major wave'3 after opex.
The bullish scenario needs to get Sp' back above 1400 quickly. It is arguably VERY important we stay above the 10MA on the hourly charts. Its acceptable to briefly go below the 10MA, but generally, anyone day/swing trading in a Long position, would have a stop just below the 10MA.
Only a maniac would be adding..or holding to short positions right now.
Arguably, any new/existing long positions should have a 'get outta there!' stop around the sp'1365 level. As always, it depends on how flexible you wish to be..and we all know the algo-bots love to do stop-sweeps to kick traders out, in order to churn/create market volume.
*I hope these intra-day updates are of use this week. Good wishes for your trading day!
More later in the day.