We are currently living around a 200-day EMA, which of course attracts attention. The SandP 500 had a wild day of trading on Thursday as CPI came in as expected. At first the reaction was quite negative, but eventually we saw buyers returning to the market and seizing the opportunity when it happened. We are currently close to the 200-day EMA, which of course attracts attention. With that in mind, I like the idea of looking at the next day or so when we get just below the 000 level and the main trend line, both of which come in around the 200 day EMA. Advertisement Test your technical skills now! OPEN A FREE DEMO ACCOUNT I think the question now is whether we have the momentum to see it all through. If we do, it would be a very bullish reversal, possibly opening the SandP 500 at 100. Whether or not that happens remains to be seen, but it’s worth noting that Monday is a holiday in the US, so Friday could be interesting at least. If people are willing to hold onto stocks for the long weekend, that’s a good sign. In such an environment, you would think that we really have a lot of momentum under the market. Avoid Shorting the Market On the other hand, if we turn and break below the candlestick for Thursday’s trade, it opens an opportunity to test the 3900 level, which also holds the 50-day moving average. . It could provide important support, but I think it’s broken, so you’re looking at the 3800 level. February is up 25 basis points from 50 basis points and that’s part of what’s fueling the market right now. I think we have a situation where you really don’t want to short this market without some sort of signal. We are in the right field for this; we just don’t have the settings yet. I look for signs of exhaustion that show there is no real confidence in this market. At the moment, it doesn’t look like we’re going that way.