Looking at the SPY daily chart, we are at the vicinity of 20 day EMA of 139, the horizontal support/resistance at 138.30, and the broken/recaptured up trend line. On the 60 minute chart, we're near the 50% Fib retracement of the 2 week selloff at 138.99, the upper trend line of the projected down channel around 139, and the 50 SMA at 138.80. In short, we're upon a blob of pivot points around the 139 area.
Should bears be worried? Of course,
- the momentum was tremendous bouncing off the 50 day MA,
- the daily STO is still oversold,
- the daily RSI is healthy just above 50,
- the MACD has reset near 0,
On the other hand, bears kind of wished for a dead cat bounce or a bear flag, in order to pave for the next leg down.