The S&P 500 has initially pulled back during the trading session on Friday but has found support yet again as we have shown a resiliency in this market that has been quite impressive. That being said, we are still far from making a “higher high”, and we most certainly made a “lower low.” With the 200 day EMA sitting just above, that could cause a certain amount of resistance, so if we see exhaustion on Monday, I would more than likely start shorting again.
S&P 500 Video 28.02.22
However, it is worth noting that the last couple of days have been very strong, and of course it looks as if the war in Ukraine is not going to expand into the rest of Europe, so that has a little bit of a “relief rally” going in most risk assets. Beyond that, it is probably worth noting that Friday would have seen a significant amount of short covering, as nobody wants to be caught on the wrong side of the trade through the weekend. With that in mind, it does look like a very bullish attempt to stabilize and rally, but it is still not technically a signal to start buying.