DailyPlay Market Outlook – Feb 26th, 2020
S&P 500 Market Outlook: Bearish & Overextended
Markets have pulled back violently and resolved its negative divergence on coronavirus fears. In this type of market, we do not want to chase shorts or try to catch a falling knife. Our initial thoughts are to look for long opportunities from this selloff but prefer to wait for stability before seeking long exposure. On a weekly chart, SPY remains bullish and this pullback puts it back into a better position for a continuation higher. On the daily chart, we see multiple positive divergences that may provide support for a bounce higher. $320 is the new resistance level target to the upside with $302 as support.
We have reduced almost all of our long exposure as markets become overextended and seek to add exposure over the next few days. View DailyPlay Trades
Beginner’s Options Course
Benefits of Options Trading– Part 4 – Live Market Analysis with Q&AS ubmit Your Questions