As we anticipated last night (see that post by clicking here), we saw further downside today. Despite the selling, we were not able to go down to the next significant level of support (1380 area). We, instead, held higher.
Holding a higher support, along with pushing back up above yesterday’s low and closing well, puts us in a position to try and rally tomorrow. I’ll be looking tomorrow for a push up above today’s high. We will see how far it can go. I don’t expect the market to push up much above the 1406-1410 level, as discussed last night, but we never know. We have had quite a run up these many weeks. Sidelined buyers and other bulls may think that the dip today and yesterday is a prime buying opportunity and provide enough fuel to rally higher. We will see.
Of course, a failure to hold up above today’s low would indicate sellers remain very active, but from tonight’s perspective, this is viewed as less likely.
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