The stock market is weak, all supports were broken & it already dropped more but is trying to rebound now as it might be too low
However, it's still possible for stocks to drop sharply again anytime
Today's Stock Market Analysis:
The stock market did rebound but failed to break above 1800 & dropped sharply again, breaking all supports until it was too low @ 1779 & rebounded again
Although stocks rebounded @ 1779.09 & continued stronger after the Fed's Beige Book report at 2pm EST,
No strong supports found as S&P 500 even dropped below 1780 so it wasn't quite safe to trade
It stayed around yesterday's closing price when President Obama spoke, then dropped more after the speech ended
It also closed slightly below yesterday's closing price again but this time was above opening price, unlike Monday & Tuesday which closed below both
This shows that the stock market is strengthening, but still not strong enough
Watch 1800 tomorrow to see if it can break above
Look to buy S&P 500 @ 1800 if it breaks & stays above, sell if it fails & drops more, for 30 minutes expiration
Buying will be riskier as 1800 has become a strong resistance & stocks can drop sharply again anytime
Traders should also be cautious not to buy too high before NFP on Friday
But if it breaks above 1800, it can stay above at least for a while, providing a small window of opportunity to profit
It'll depend on the market's strength tomorrow
We'll continue to update after more data tomorrow
Market pattern found: S&P 500 stayed around 1800 for an hour before dropping sharply, which was the same as yesterday from 10am-11am EST
If this pattern repeats, sell S&P 500 @ 1800 after it stayed around 1800 for an hour then drops further
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