The S&P 500 has rallied more than 15.6% off the lows with the bull now testing confluent resistance at 5531/43- a region defined by the 78.6% retracement of the monthly range and the April high-day close. Note that a three-point resistance slope converges on this threshold and the immediate advance may be vulnerable while below.
Initial support rests with the 4/22 reversal close at 5285- losses below this threshold would threaten another bout of selling towards the yearly low-day close (LDC) near 5061.
A topside breach / close above this hurdle exposes the monthly open at 5600 and the 61.8% retracement of the decline off the record highs at 5634- look for a larger reaction there IF reached.
Bottom line: The index is testing resistance here- losses would need to be limited to 5285 IF price is heading higher on this stretch with a close above 5434 needed to clear the way for the next leg of the advance.
-MB
Initial support rests with the 4/22 reversal close at 5285- losses below this threshold would threaten another bout of selling towards the yearly low-day close (LDC) near 5061.
A topside breach / close above this hurdle exposes the monthly open at 5600 and the 61.8% retracement of the decline off the record highs at 5634- look for a larger reaction there IF reached.
Bottom line: The index is testing resistance here- losses would need to be limited to 5285 IF price is heading higher on this stretch with a close above 5434 needed to clear the way for the next leg of the advance.
-MB
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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.