The 3 major stock indices that I follow regularly have all triggered the recently highlighted pending buy signals of breakouts above their respective downtrend lines. While a solid daily close (to minimize the chance these breakouts will prove to be a whipsaw or only intraday breaks) would increase the odds of additional upside, the problem with waiting for a daily close is that the current oversold conditions & bearish sentiment extremes increase the potential for a powerful short-covering rally that could deny an objective long entry, should the market close up 3%+ today. Daily charts of SPY, QQQ, & IWM (with rough, not precise) targets below.
SPY daily March 14th
QQQ daily March 14th
IWM daily March 14th
Counter-trend rally or not, I still believe the R/R is not favorable for initiating new short positions at this time. While there is very much a decent chance this bounce & breakout might get sold into due to the flurry of major sell signals & other bearish developments in recent weeks, one must decide if & how to position for a counter-trend bounce while longer-term trend & swing trades might continue to sit tight on their core short positions as I still have a fairly high degree of confidence that my longer-term downside swing targets will be hit in the coming months+.