The S&P 500 is down again this week, but it’s trying to stabilize. Looking back to the left of the chart, a potentially important level could be in play.
3214.68 was the low on January 31. It was the last meaningful support level before the coronavirus panic swept the market in late February.
Scrolling back to an intraday chart from that fateful time of February 24-27 highlights the importance of the 3214.68 level. The S&P 500 held it almost exactly on the Monday (24th). Then on the Tuesday (25th), it knifed through it and didn’t look back.
Yesterday morning, the S&P 500 probed under that same level but quickly rebounded. That could be a false breakdown, leading to a potential reversal higher.
The 3214.68 level from late January has mattered at other times since the crash. It was near the high in early June. It was resistance July 13-17 and then support July 24-30.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
3214.68 was the low on January 31. It was the last meaningful support level before the coronavirus panic swept the market in late February.
Scrolling back to an intraday chart from that fateful time of February 24-27 highlights the importance of the 3214.68 level. The S&P 500 held it almost exactly on the Monday (24th). Then on the Tuesday (25th), it knifed through it and didn’t look back.
Yesterday morning, the S&P 500 probed under that same level but quickly rebounded. That could be a false breakdown, leading to a potential reversal higher.
The 3214.68 level from late January has mattered at other times since the crash. It was near the high in early June. It was resistance July 13-17 and then support July 24-30.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
