S&P 500 Index Bear Market Rally Targets (Notes on chart written last night, March 26)
I am able to calculate a “tight” Money Flow Unit (MFU) off the recent S&P 500 Index low with an initial target at our MFU-4 trading target of 2635.
That level was hit yesterday and considering the sharpness of this bear market rally, we need to be alert for selling / a pullback.
In fast moving markets, countertrend rallies tend to be 3 days or less.
Our MFU-5 trading target is at 2746 should that market decide to head higher yet.
The S&P 500 closed at the MFU-4 target and is just under the .382% retracement level. The first area to look for a potential turn is at Thursday’s highs.
We will find out a lot about market structure when we test the recent low.
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