SPX 500 17 March Market Analysis

• The weekly candlestick closed in its upper half with a long tail below.
  
• The market formed a parabolic wedge (3 pushes - 28 Feb, 7 Mar, and 13 Mar). That increases the odds of a minor pullback.
  
  
• The bulls want the market to form a 2 legged sideways to up pullback.
  
• They need to create credible buying pressure - consecutive bull bars closing near their highs.
  
• Until they can do that, traders may not want to buy aggressively.
  
  
• The bears see any pullback as minor. They expect at least a small second leg sideways to down to retest the Mar 13 low.
  
• The 9-bar bear microchannel on the daily chart and the 4-bar bear microchannel on the weekly chart increases the odds of sellers above the first pullback.
  
  
• For now, because of the climactic selloff and parabolic wedge, the market may try to form a minor pullback.
  
• Traders will see the strength of the buying pressure. If it is strong, they may look for a retest of the breakout point - Jan 13 low.
  
• If the pullback lacks follow-through buying, the odds of another leg down increases and traders will sell the pullback.