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Swing Trade Idea – May 5, 2021

The S&P 500 rallied hard from the lows yesterday with the bulls driving price back up close to the open.

With a long lower shadow, and open and close very near to each other, this price action has the implications of a hammer.   Perhaps hammering out the bottom; bullish.  The GoNoGo Trend is still a “Go” and support was found yesterday at the lows of the session.  The GoNoGo Oscillator is also at zero currently.  We will look to see if the oscillator can find support here.  If it does, and bounces back into positive territory then we would likely see price move higher. A break below zero would be a concern and pose a real struggle for the “Go” trend.  We are also seeing bearish divergence between price making higher highs and the GoNoGo Oscillator making lower highs.  A bit of a mixed bag …

Author: Alex Cole