Is Current Market All Bull?
While the market appears to be rebounding around political shifts and upbeat healthcare sector news, veteran traders are cautious about bullish trends.
Insight into this volatile market shows the recent sharp move down was a technical sign of a much needed pullback. Negative news from the coronavirus combined with political fears don’t get all the credit for the pullback, or the sharp upturn.
Moderators at Simpler Trading pointed out levels of extension and exhaustion on the charts before the rash of daily drops over the previous week worth of sessions. As the market resets, traders can be optimistic while remaining cautious.
There are still many unknowns related to the coronavirus spread and how it affects global markets along with political preferences that may pressure markets in the fall.
Despite a 1,170+ point surge during the Wednesday session the market may well consolidate further or pullback again as it digests various outside pressures.
Safe picks for tickers during this continuing volatility include symbols and sectors that might benefit from coronavirus issues or won’t be negatively affected. These include such tickers as NFLX and CLX. NFLX is an option when consumers need entertainment while waiting out the virus and CLX makes supplies to help fight the virus and its spread.
Traders are encouraged to have patience while eyeing a possible bull market trend. If technicals change suddenly, a stronger pullback could occur before the market decides to turn back toward previous highs.
We Saw: sharp rebound following Super Tuesday political events —
- Will history of market drop hold after Fed cut rates?
- 10-year Treasury yield struggling to regain 1% mark
- Trading fickle and reactionary with political news
We’re Watching: … strong internal technical signals for future bulls —
- Many opportunities with sharp upturn today
- Tickers with bullish promise?: CLX, NFLX, AAPL, BYND, SHOP
- Stocks across the board leave correction territory
Want to train during live trading hours? — check out the Simpler Trading mastery training HERE.