Home Stocks Friday Market Rebound

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A key indicator came into play in a major way Friday. No it wasn’t some advanced biometric alto that new where the bottom was going to be on Friday. It was one of the most common and well known technical indicators that is available and it was something widely watched by the big money traders. It was the 200 SMA or Simple Moving Average. This indicator will take the closing price and average it out based on the dedicated time frame. In this case it was the last 200 closing prices on the daily chart. And this indicator on the SPX/SPX and others led to a crazy rally. Just like how we dropped with velocity, we rallied like Elon musk launching a SpaceX rocket ship. Maybe I’m reading too much into all of this. It was the end of the week and sellers had to be exhausted. Yes that is a part of that. Sellers clearly had this level in mind as their target and that married to the same level that buyers had targeted. It was a perfect storm to say the least. That is also why we got the rejection we did and it could be our floor. A defined floor and that is crucial in this volatile market. That a key price level held like the floor it was thought to be in this wild and volatile environment. I can’t speak to the strength on that level on Friday. Every other possible support level above this price range was cut through like a hot knife through room temperature butter. Yet the 200 day SMA held like no other. The power of the market auction process and targeted levels of interest. The subsequent reaction and thought process that follows. This is how traders get that partial edge. It’s the same for predictive behavior based on recent history combined with market experience. This is what we teach daily and how to help transform clients. This is how we add onto your success and help clients who struggle in the markets. Let’s see if the bounce leads to much more. I expect a carryover into today. It wouldn’t surprise me if we rally all week. I won’t suggest that but that is one heck of a bounce off the 200 day SMA. I know sellers remain lurking so I would need buyers to completely rollover the sellers. Literally demoralize them to the point where they won’t even bother trying. Until that happens, just know sellers are lurking and ready. Do not underestimate the power of the bears. Just remember what happened last week in case you’re not sure. For now, expect the bulls to try and run. Long Signal: HLF DECK EW  Short Signal: EDU Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC  JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV



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