Intraday Look and Analysis: Stretching the Proper View

Here it is–Your 4.8% S&P 500 Index correction since mid-September on a massively zoomed-out 30-miute timeframe (of the SPY).

The reason why I am showing you this is to point to the major area we are now up against with this rally. It was support until we lost it in late-October. We bumped up again the $143.50 area since then, each time to no avail.

And yet, the bears have been inept in cracking the market for another major leg lower. A move up and through this area is likely to catch many traders out of position–Namely the ones who concluded that another leg lower is a foregone conclusion.

Since October 23rd, though, the myriad of bullish divergences across many sectors have held true, which would have saved you from getting caught short at the lows last week. Needless to say, the bulls still have much more work to do in order to cement a meaningful bottom.

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