New Signal Short Term: Markets do what markets do best, trading the price bounce up.
Even though the market price action is very volatile, and the selloff we had has been dramatic, the markets are still doing what markets do best, which is providing liquidity (on both upside and downside) and estimating future valuations very quickly.This bear market is the fastest bear market in history, just a month ago the S&P 500 was at all-time highs and Now the market is down nearly 30% from those levels. Looking at the Nasdaq 100 long term chart we can see we hit a long term price support level from which we started to bounce up. Currently, looking at intraday chart we can see we just cleared a short term level of resistance (7,500) which can allow for further upside up to the 7,800 -8,000 price level. However, keep in mind that long term we are still in a down trend now and if price decline again below 7,200 level it is better to get back on the SHORT side of the trade.