S&P 500 Index Bear Market Rally Targets (Notes on chart written last night, March 26)
I am able to calculate a “tight” Money Flow Unit (MFU) off the recent S&P 500 Index low with an initial target at our MFU-4 trading target of 2635.
That level was hit yesterday and considering the sharpness of this bear market rally, we need to be alert for selling / a pullback.
In fast moving markets, countertrend rallies tend to be 3 days or less.
Our MFU-5 trading target is at 2746 should that market decide to head higher yet.
The S&P 500 closed at the MFU-4 target and is just under the .382% retracement level. The first area to look for a potential turn is at Thursday’s highs.
We will find out a lot about market structure when we test the recent low.
The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
