The SPX dropped briefly into the buy zone and jumped out of there like a scalded dog. As the world learns more about COVID-19, and countries around the globe are starting to “slide over the hump”, odds are that the low is in:
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Whether the April low will be retested or not will depend a lot on the timing of the lifting of restrictions, economic recovery, etc., things we can only speculate on for now. From a technical perspective, the bulls will get the upper hand with a break above the March and June ’19 lows, while a drop below the December ’18 low will reignite the debate about the type, nature and quality of the current rebound.
Market breadth showed a huge positive divergence at the March lows and is, once again, at oversold levels. This, should be supportive of a sideways/up move until overbought levels are reached again (market breadth levels get updated daily here):
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The SPX weekly targets remain unchanged:
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OIL seems to have found a bottom last week, Gold keeps the same targets, USDCHF is headed for resistance at parity, and BTC remains in an upswing.
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