Bullish Case for ES and SPY
I used ES here as ES has the best intraday volume read in hindsight as opposed to the CFDs and SPY (SPY daily/W/M volume is fine but noticed intraday volume is only from one data source).
1) The case here is that we have a bounce on the 50 EMA on the daily on high volume. We need to see continuation but at minimum we see a large uptick in volume meaning there seems to be at least some buyers here. We're in a massive bull run at the moment so if the trend continues, this may be a good dip. There's a lot of panic over the corona virus, and rightfully so on a fundamental level. That said, I firmly believe on the index level fundamentals have become less and less relevant.
2) Put Call Ratio on Spy was over 2 on Friday and has been climbing. Last time there was a spike like this in P/C ratio was 12/24 and next trading day, 12/26 market bounced up.
3) Trend is your friend, there was a high volume sell off on Friday but it seemed pretty controlled and with a nice volume spike at the 50 EMA on daily. I do think we will bounce and at minimum
1) The case here is that we have a bounce on the 50 EMA on the daily on high volume. We need to see continuation but at minimum we see a large uptick in volume meaning there seems to be at least some buyers here. We're in a massive bull run at the moment so if the trend continues, this may be a good dip. There's a lot of panic over the corona virus, and rightfully so on a fundamental level. That said, I firmly believe on the index level fundamentals have become less and less relevant.
2) Put Call Ratio on Spy was over 2 on Friday and has been climbing. Last time there was a spike like this in P/C ratio was 12/24 and next trading day, 12/26 market bounced up.
3) Trend is your friend, there was a high volume sell off on Friday but it seemed pretty controlled and with a nice volume spike at the 50 EMA on daily. I do think we will bounce and at minimum