S&P ($SPX500USD)📈 | The FED Speaks, All We Hear is Buy the Dip.💥💥The S&P 500 looks like it could be looking at a little downside as the market figures out what it thinks of the very impactful FED speech.
Do we rally here as the market focuses on stimulus and low interest rates for years to come? Or, does the market panic a little over the unemployment rate. Both moves are valid, but we think whatever panicking being done is ultimately going to result in more upside.
So then, let's look at some levels where we might find support and get a sense of where resistance sits for if we and when we do move up.
Support.
The S1 S/R flip is our most likely candidate for support. That gives us a little cool off, but ultimately keeps the current bull run well intact.
The S2 orderblock and S/R flip is the next level of support for the bulls, S2 retains a bullish structure while front-running the S3 major pivot point. S3 is where the bulls will need to hold to show the world who runs this mother #$@%^!.
At S4 we are likely in for that "slow recovery" the FED was talking about, but the bulls could always pull an upset here. S6 and S7 give us a chance at higher lows, but at this point, it's a long way down to those support levels.
Resistance.
The R1 orderblock cluster is an obvious resistance since it is hanging right over the current price action's head. The major resistance point is the R2 S/R flip cluster that includes the previous all-time high.
Summary.
Can SPX take out the ATH like NASDAQ? Of course, but it is likely we are in for a bit of a pullback while the market reacts to the FED news.
In fact, if we just see a straight rip up without a moment to cool down, we would be wary of the FOMO and greed ramping up in the market.
There is always another trade, so let's let the market come down to a logical level and not chase the SPX dragon.
Resources: www.washingtonpost.com + www.cnn.com + www.cnbc.com
