The S&P500 rally stalled at a key resistance cluster
The jury is out over whether a bear-market rally has topped, or last week’s decline is simply a pullback ahead of its next break higher. Yet the turn of momentum at a key resistance cluster suggests bears are regaining control.
The S&P 500 had its most bearish week in 5 as its rally stalled at the 50-week MEA, trend resistance, a 161.8% Fibonacci ratio and the September high. The daily chart shows prices closed below trend resistance, and the market has since failed to move back up to 4,000. A bearish outside day formed on Friday to who momentum is trying to turn lower.
A break below 3915 assumes bearish continuation, with 3818.2 an initial target, and a break below 3800 brings 3700 into focus.
The S&P 500 had its most bearish week in 5 as its rally stalled at the 50-week MEA, trend resistance, a 161.8% Fibonacci ratio and the September high. The daily chart shows prices closed below trend resistance, and the market has since failed to move back up to 4,000. A bearish outside day formed on Friday to who momentum is trying to turn lower.
A break below 3915 assumes bearish continuation, with 3818.2 an initial target, and a break below 3800 brings 3700 into focus.
Related publications
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.