S&P 500 breaks down the up channel - range or reversal?
21 Apr 2020 recap - S&P 500 futures (
ES1!
) broke below the up channel since the bottom from 23 Mar 2020 and a key support level around 2750 with increasing supply, as spooked by the meltdown in oil price.
This is a change of character for the uptrend, suggests that the up move could at least stop for now, at minimum to go into a trading range if not reversing to test the the lower support levels.
Should S&P 500 commits above 2750, this would violate the bearish case and a trading range between 2720–2880 is likely.
Bias - down
Key levels - Resistance: 2780, 2800, Support: 2750, 2717, 2635
Potential setup - look for a test of the of the break down around 2775–2800. A rejection from this level could be a good entry for short. First target at the swing low at 2717, second target at 2635. Stop loss at 2791.
ES1!
) broke below the up channel since the bottom from 23 Mar 2020 and a key support level around 2750 with increasing supply, as spooked by the meltdown in oil price. This is a change of character for the uptrend, suggests that the up move could at least stop for now, at minimum to go into a trading range if not reversing to test the the lower support levels.
Should S&P 500 commits above 2750, this would violate the bearish case and a trading range between 2720–2880 is likely.
Bias - down
Key levels - Resistance: 2780, 2800, Support: 2750, 2717, 2635
Potential setup - look for a test of the of the break down around 2775–2800. A rejection from this level could be a good entry for short. First target at the swing low at 2717, second target at 2635. Stop loss at 2791.
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