The S&P 500 closed Friday with a huge bearish candle, and price found itself suspended between the 20 & 50 simple moving averages.
The next logical level for price to move to was the 50 simple moving average, which is the next support level on the daily timeframe.
Price had other ideas as Monday opened higher than Friday’s close and near the middle of the candle. We will now have to see how the week goes.
Price right now has moved below the 20 simple moving averages, which was previously acting as support. This indicator has now become resistance and should be broken soon if the uptrend momentum continues to strengthen.
Despite the recent bearish moves, the market remains in an overall uptrend, and we continue to look for bullish UK and US stocks.
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