The PBOC (More Central Bank Monetary Stimulus) Rescues the Equity Markets Yet Again

Purely from a technical perspective, the fact that the e-SPM is trading above 2080-- its 20-Day EMA discussed on Friday-- and the fact that the index pivoted to the upside sharply off of its 50%-60% retrace-support zone of the entire prior upleg from 2033 to 2105-- suggest strongly that a near-term pullback low has been established.

A close above 2080 will be our first confirmation that a pullback low is in place, which also will "warn" us that the Dec-Apr sideways pattern represents accumulation (bullish corrective action) rather than distribution (topping action).

For intraday trading, key resistance resides at 2090/92, while key support rests at 2080/75.