The bears really have to pay close attention to the 50-day moving average. Until last Friday this MA had been irrelevant to the market, paying little to no attention to it.
But last Friday it bounced hard after dipping below it intraday, and then went on to rally three straight days.
Today, the bulls gave up all the pre-market gains it was sporting, and has since sold off hard going right back down to the 50-day moving average again and, you guessed it, the bulls are trying to bounce it.
It may or may not hold here. I’m not sure. What is known though is that if the bulls can’t hold strong and keep price above the moving average, it may in fact inspire the bears to keep pushing this market lower.
Here’s what I’m talking about:
