On the Weekly S&P 500 cash chart, you can see that the market is trying to fade the 50% correction level of the two-year range. So far, the market is being stubborn about correcting to the down side.
The "B" formation is bullish, especially when the close is above today's Point of Control.
The area that can be most profitable is when the market test a key pivot point. It will either bounce off and return to an area of high volume, or trade through and establish a new equilibrium zone. This afternoon, the market tested the 1095 - 1096 area, which was the lunch time low, yesterday's low, the overnight low and yesterday's close. It decided to bounce and return to the VWAP line giving bulls a nice swing profit.
Charles
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