The markets did finally bounce today, from the highly oversold conditions. The bounce indeed was very impressive but the question is whether this is just a relief rally, where we continue going down after a brief respite or something more meaningful that. Here are the levels I will be looking at to get the answer to this questions.
The very obvious level to watch out for is MA(50), which the market might tackle as soon as tomorrow. But the line in the sand, at least for me, would be the 1220-1225 zone. Of course, higher highs would be great but a move above the 1220-1225 zone is needed to show that this move actually has some legs.
Take care and good luck!