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.
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@BakiShirzadi, I think it is a falling wedge!!!! If it is we will break upwards into a double top till November 3 or 20th something to do with no knowing who might win the election and then drop from there
CoinBlank
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@zblumstein, Yeah, I def see the possibility with a double top forming! Typically things begin to pick up after the election, but I don't think there's going to be much momentum to keep this going over the long term. Covid is still gonna be here, so shit might just hit heavy resistance and drop like a rock.
bsimo0001
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Still thinking the final move will end up at the 200DMA, we haven't broken above the 21DEMA to buck the down trend. Not sure what the trigger will be and would probably have to gap down below the 100DMA.
zblumstein
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@bsimo0001, the S&P. rarely ever touches it's 200 MA when it does touch it's 200 MA it breaks through it almost every time
bsimo0001
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@zblumstein, I have to disagree with you, only takes looking at the S&P500 chart to see it touches it quite often.
zblumstein
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@bsimo0001, what time frame are you looking at cause I'm looking at the daily and the weekly
zblumstein
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@bsimo0001, well honestly look at it like this we usually spend a year flatlining where bulls can't push the price much higher before we drop like a rock. So we could be in this flat lining up and down motion till like December before we actually drop