What a day yesterday! Financial news and social media was aflame with concerned investors discussing how terrible the morning's trading was. And yes, that first hour was something. But, its important when there is volatility to stay calm and focused on the trend!
By the close of trading, the S&P 500 had rallied and in fact closed in positive territory.
The GoNoGo Chart shows that the price action only broke out of the lower bound of the channel on an intraday basis. The close was back well within the channel. So where do we stand today? We are in a "Go" trend, we have pulled back to the support of the trend channel. The GoNoGo Oscillator has fallen to zero, where we know it should find support if the trend is healthy. We will look closely now to see if that happens, if it doesn't, and the oscillator fails at the zero line, then we'd have more cause for concern regarding the trend we are in.
By the close of trading, the S&P 500 had rallied and in fact closed in positive territory.
The GoNoGo Chart shows that the price action only broke out of the lower bound of the channel on an intraday basis. The close was back well within the channel. So where do we stand today? We are in a "Go" trend, we have pulled back to the support of the trend channel. The GoNoGo Oscillator has fallen to zero, where we know it should find support if the trend is healthy. We will look closely now to see if that happens, if it doesn't, and the oscillator fails at the zero line, then we'd have more cause for concern regarding the trend we are in.