Thursday's Market Minute: Stocks Looking For A Bounce After Tuesday's Troubles

Tuesday was the worst day of 2023 (so far?) for stocks, and S&P Futures are trying to bounce back this morning. For now, the /ES is still moving upward and holding to a trendline that begins with the October lows and touches the lows of the consolidation range from late December. This will be a critical point to hold, as it also represents the yearly Volume Profile Point of Control (the price level with the heaviest trading activity) at about 4,017 and the 63-day Exponential Moving Average near about 4,016. 

Momentum paints a bearish picture, as the RSI fell below the 50-midline that demarcates bullish/bearish momentum and is still making new lows with price. The Parabolic SAR (a study traders use to gauge trend and set stop losses) shifted to bearish this week, as did the Moving Average Convergence Divergence (a.k.a. MACD, which is another measure of momentum).

The door to further upside lies near the 4,208 mark now, which is roughly where price topped out on Feb. 2. For support, the 50-day Simple Moving Average and the 200-day SMA are just below prices at 3,999 and 3,988 respectively, both of which could be significant places to watch.

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