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It is up to you whether you choose to respect or ignore yesterday’s downside rejection. Either way, the bulls are, so far, following protocol.
On a 30-minute timeframe of the S&P 500, the bulls are doing everything that they need to do since yesterday afternoon’s stunning reversal. As I have been discussing, I am choosing to respect the downside rejection, as the bears had every opportunity to break this market down. Currently, stocks are consolidating the reversal higher in a rather constructive way, as you can see below. It is not the end of the bears per se, but when we are dealing with a market as seemingly random as this one has been over the past month, it is best to find a sensible timeframes where you can manage the levels. Here, a break above 1174 would now be significant (the chart below is actually the SPY), as it would take us up and out of this consolidation pattern.
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