We saw a nice bounce but we are now hitting Fib resistance. It could be argued that we tested it on Friday and failed to overcome the 2740 levels but it's too early to tell. Our daily candles had a higher low but a flat higher-higher after imprinting a green candlewick. So it's unsafe to be long or short at this point since the markets aren't sure. The bulls are timid and the bears aren't as strong as they once felt. Many of the indicators are still bullish (thumbs up) and the bias longer term is still bullish but these are uncertain times. Be prepared to jump in one direction or the other with confirmation. In the meantime, the safest place to be if you are short term is cash. It's important to note that historically late February is generally a bearish time of year and given the consolidation that needs to happen to form a base, don't be surprised short term bears might bring this down to Fib support levels.
If that happens don't be alarmed unless we fail to maintain these support levels or establish new lower lows on the day candles. It's simply too early to tell at this point.
If that happens don't be alarmed unless we fail to maintain these support levels or establish new lower lows on the day candles. It's simply too early to tell at this point.