S&P500 BUYING OPPORTUNITY?

 
Day before Yesterday was the lowest volume trading day.Yesterday , volume picked up in first few hours of the trading day and then again a long quiet dull day. It looked like half day with traders on leave.

As you can see in the chart above: S&P 500 futures started just below yesterday’s low and kept on selling off. The volume was pretty solid and futures made a low of 1688.75 around 10:00 am CST. That was the end of all excitement and trading volume. S&P futures managed a decent recovery on very low volumes and then remained quiet for the rest of the trading day.
Technically not much has changed. The undertone is still very bullish and there is no follow through on selling. Tomorrow, it would be interesting to see whether there is follow through to today’s weakness or not.
Pullback = Buying Opportunity?
Here’s S&P500 daily chart (spot)

Few days back, S&P500 broke out above 1696-1698 on daily chart. Today’s selling has pulled back the index to breakout point. Does this represent buying opportunity? The answer seems to be yes but remember charts are stretched and any follow through selling can create some nervousness. We are in an interesting place and the benefit of doubt should go to bulls.