Hi everyone, this chart is by no means original, but still a fascinating development to me, and I'm sure some of you have seen already.
The SPX weekly closed yesterday above its 200-day moving average, considered a major support between a possible counter-trend or a complete collapse in the price. This is positive news for bulls out there, as this could be the support and indicator that people have been waiting for.
Should next week there be a selloff again, and the price finishes below the 200-day moving average, the next support would be the Fibonacci retracement level of 61.8% at $2275.80.
Both the 200-day moving average and Fibonacci level would be possible levels to enter a buy position, in the expectation that the market rebounds off of those supports.
The SPX weekly closed yesterday above its 200-day moving average, considered a major support between a possible counter-trend or a complete collapse in the price. This is positive news for bulls out there, as this could be the support and indicator that people have been waiting for.
Should next week there be a selloff again, and the price finishes below the 200-day moving average, the next support would be the Fibonacci retracement level of 61.8% at $2275.80.
Both the 200-day moving average and Fibonacci level would be possible levels to enter a buy position, in the expectation that the market rebounds off of those supports.
Comment:
After finding the support at the 200-period Moving Average, SPX has reversed trend, and is now climbing upwards steadily, recovering half the value it lost in December. I think this up-trend continues and is worth initiating a buy position on. Momentum is returning to US equity markets after an abysmal end to the year.