Last week the S&P 500 was showing near-term weakness and appeared to be moving down towards
the weekly 200 simple moving average. It started to show strength by the end of the week and
closed with an indecision candle.
This week, we want to see further strength to the upside and for price to move up towards the $3,000
round number. This is a psychological area of support & resistance.
This index has recovered well so far from the effects of the pandemic, rising up 29% following its sharp
35% fall in February & March 2020.
With price looking stable now, we want to see a consistent rise continue over the next few months
and even longer.
We still have the 200 simple moving average above price on the daily timeframe and this may form
strong resistance, preventing price from advancing so we need to see how price reacts to this area.
The more time we give price to move, the clearer the overall picture will be. We will be able to identify
which direction price is heading and allow us to position ourselves for the next trend.
As for now, we want to continue to stand aside from taking positions in stocks and preserve our capital.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
the weekly 200 simple moving average. It started to show strength by the end of the week and
closed with an indecision candle.
This week, we want to see further strength to the upside and for price to move up towards the $3,000
round number. This is a psychological area of support & resistance.
This index has recovered well so far from the effects of the pandemic, rising up 29% following its sharp
35% fall in February & March 2020.
With price looking stable now, we want to see a consistent rise continue over the next few months
and even longer.
We still have the 200 simple moving average above price on the daily timeframe and this may form
strong resistance, preventing price from advancing so we need to see how price reacts to this area.
The more time we give price to move, the clearer the overall picture will be. We will be able to identify
which direction price is heading and allow us to position ourselves for the next trend.
As for now, we want to continue to stand aside from taking positions in stocks and preserve our capital.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
