Bouncing back from losses posted last week, the major U.S. equity averages finished higher on Monday. The rebound allowed the S&P 500 to bounce off its lowest finish in more than a month.
On the economic front, durable goods orders dropped by a larger-than-expected 4.5% in January. However, core durable goods jumped 0.7%, outpacing the 0.1% increase that economists had predicted.
Chart: SPX daily and 30 mins
From the tech side of analysis, instead of opening low and directly pulling up to complete price correction back to 8&21 EMAs daily, the market opened up high above 4000ish and tried to break 4030ish in the first trading hour, but extension and profit taking kinda of make this "break" became a sign of short trade. The last hour was ok, which made the market still hold last Friday's close. But it makes SPX look quite negative on the daily chart.
Chart: SPX daily and 15 mins
Therefore, most likely the market will keep going up to test 4030ish level, if failed. The 8 EMA line daily will keep moving towards price, so time correction will be complete. Then the market will keep dropping. And another possibility is market break yesterday's high and break up this shooting star doji daily, then upside low pivot confirmed. No matter which way it is, today might be hard for day trade if risk reward ratio is not big enough.
Please feel free to express your ideas and thoughts in the comment section.
On the economic front, durable goods orders dropped by a larger-than-expected 4.5% in January. However, core durable goods jumped 0.7%, outpacing the 0.1% increase that economists had predicted.
From the tech side of analysis, instead of opening low and directly pulling up to complete price correction back to 8&21 EMAs daily, the market opened up high above 4000ish and tried to break 4030ish in the first trading hour, but extension and profit taking kinda of make this "break" became a sign of short trade. The last hour was ok, which made the market still hold last Friday's close. But it makes SPX look quite negative on the daily chart.
Therefore, most likely the market will keep going up to test 4030ish level, if failed. The 8 EMA line daily will keep moving towards price, so time correction will be complete. Then the market will keep dropping. And another possibility is market break yesterday's high and break up this shooting star doji daily, then upside low pivot confirmed. No matter which way it is, today might be hard for day trade if risk reward ratio is not big enough.
Please feel free to express your ideas and thoughts in the comment section.
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