S&P500 was evolving in an ascending canal (delimited by S and R) since 2 years. The support of the canal was broken significantly the 25 octobre. In the meantime, the support S1 of the 2700 points has been broken. After that, the S&P500 did a pullback into the resistance S1. The probability of a bearish trend is the prefered scenario.
The arguments in favor of the bearish scenario:
* Strong resistance S1
* Strong resistance S
* bearish gap g
* resistance R1
* resistance of 52 days moving average
First objective is o1
Second objective is o2
The arguments in favor of the bearish scenario:
* Strong resistance S1
* Strong resistance S
* bearish gap g
* resistance R1
* resistance of 52 days moving average
First objective is o1
Second objective is o2
Note
S&P500 continues to climb. The indice will arrive at the level of the very strong R1 resistance (2800) which will try to block buyers with the 50 days moving average. Bearish reversal is still the preferred scenario.Note
Strong upward momentum on S&P500 today generating a new gap g2. The price has broken R1 and is attacking the 50 days moving average. The uptrend is not yet confirmed certainly because of the presence of g1 and g2 that will pull the price down. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.