With 1390/95 failing to hold, we're seeing a moderate bear covering event. We have a reverse stop-cascade upward, and these things sure can get nasty, even on a slow day like today. Where will this nonsense stop? The next set of stops will doubtless be around 1399/1402 or so. Best 'bull case'..would be the cascade keeps going, and the market closes around 1405.
Here is the problem..and its a huge problem for the bears.
Sp'monthly - simple version
What had been a reasonably bearish candle for April is now a mere 11pts from closing the month.net positive. Lets be clear, if we close around this level..or higher, the bearish case is again put back on hold..
*brief update on the hourly cycle, which is now starting to turn into a real horror pic for those presently short this market.
With 1395 failing to hold, sp'1400 is right back on the agenda. Despite the less than inspiring jobs data, and other econ-news this week, we are just not seeing any decent follow through to the downside. Monday's significant gap lower is now a distant memory.
The one solace right now, the RSI is now 72, that is without question in the overbought zone, but we could stay in that area for some hours, even a few days.
This ain't looking good for those in bear land.
in the bunker