Yesterday's market action was interesting to say the least. After a quick bounce from the abyss throughout March, the market finally took a breather yesterday. We made a huge gap down and managed to trade exactly within the 10 day and 40 day MA, see Figure 1 right.
Throughout the month, it is obvious that we have more volumes on the up days than on the down days, Figure 1. Yet, as optimisic as it look, we are still playing within the boundary of the down trend since last October, see Figure 2.
In the short term, watch for the 780 and 800 levels for the directional hint. In the longer run, keep track of any violation of Figure 2. That would be the play to be in since the short term moves have been a wild ride and difficult to keep on.
[caption id="attachment_1169" align="alignright" width="500" caption="S&P 500"][/caption]
[caption id="attachment_1170" align="alignright" width="500" caption="S&P 500"][/caption]