Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
After the large gap down the indexes have fought back nicely, after all it’s a Tuesday. But on a serious note we have a very strong support level at 1622-1623; since May 8 this has held as a bottom 7 different days. Of course that broke briefly last week but by and large it’s been a very strong level. If you are bullish here you can say we are forming an inverse head and shoulders formation with last Thursday’s lows as the head. The index still need to get out of this descending channel and have the MACD crossover bullish for some intermediate term strength. Volatility dropping would also be of benefit – the market is flopping around like a fish out of water the past few weeks.
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