Support holds (for now)
The S&P held at support for now. The SPY bounced off its 50 day EMA but is now test two different short-term trendlines.
Should it break through resistance, the 78% retracement of its 2008 drop will be tested once again. As highlighted in the chart below, Fibonacci retracement numbers have been regular support/resistance through this rally, as highlighted by the highlights in the chart below. Purely random? That’s a lot of random dots.
It seems only reasonable to remain cautious until these long term rising wedges that appear in so many risk assets are resolved.