spx daily view for week 8/05/19

. below bollinger band ( oversold sign)

.went below 50 day ma in blue and closed above

. found support near 38.2 retracement

. RSI nearing oversold levels around 40.

trading plan.

Monday morning

A down open or retest of Fridays low or a break of Fridays low and regaining that low should be bought for an oversold bounce.

An up opening can be an attempted fade at resistance for a downside test of lows. Must cover into weakness.

Monday – Wednesday can expect an attempted bounce to work off the oversold bounce. Will have to evaluate the quality of the rally to see if this was just a dip like many others where we go straight back up. I suspect there is more downside and lower levels tested this month.

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