Market Update 1/20 – Short Term Capitulation in Equities?
SPX printed 4447 after the close. This is a good spot for a bounce, especially given elevated volumes in SPY and QQQ today. The red bars on the charts below indicate when the volume is at least 1.5 x the 20 day average at a 50 day low. The market usually bounces following one of these high volume days, although there are of course exceptions. My ‘favored’ view is that price bounces but that the bounce fails near 4530.