Morgan Stanley (MS) is testing a key uptrend line that lines up with its important 200DMA today. There are two scenarios to keep an eye on the charts.
One scenario is that the bears get trapped here at the break of this trendline and are forced to cover their shorts.
The second scenario to watch is the bears are able to break through the trendline and sell any rallies.
We can see XLF is not near its uptrend line. If it does pullback to that line MS traders might be facing the second scenario.
MS also has a VR level of 2.61 vs. SPX. Much more volatile than the index. Risk management is a must.