SPY daily chart
Watching support and resistance. The SPY looks like it is heading to the swing highs and could extend to the magical 400.
March is normally very choppy taking out day trader’s stops. Watch for SPY to close gaps.
On this chart you will notice that the 50 Moving average is being tested and acting as support.
We also have higher lows. Where the tests of lows was acting like a bouncing support. There are some open gaps that we might see addressed later, but as we are on the threshold of one of the largest stimulus packages in history I would be careful shorting this market as it stands.
As there is seller exhaustion there is buyer exhaustion too. Read more about seller exhaustion here.