The market made its way down to 6550 today and bounced pretty much immediately to close at 6606. This may very well be the new battle ground level for a minute.
It has pretty much followed what was the most likely scenario going into the week.
The key resistance area is squarely the 6800 level. Will it make it’s way up there or continue down? At the moment, a bounce seems very likely in the near term. I only say that since all the breadth indicators are oversold.
The hourly chart also gives some insight. The market has been almost perfectly following a price channel downward and there does not appear to be an appetite for the market to break the channel that has been in place over the past month.
It will be interesting to see what happens next!
