The S&P 500 continued to decline last week. Past levels of support formed from
previous lows, so we had to look at the next obvious level of support.
In this case, it was not a previous high or low but a psychological level in the form
of the $4000 round number. The weekly timeframe clearly displays a reversal candle
that did not close below $4000, which is a good indication of it being a strong level of support.
Price could still break this level, but for now, it is holding. What we want to see going
forward is a bounce from support and a resumption of the bull trend. A pattern of higher
highs and higher lows will indicate bullishness in the market.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
previous lows, so we had to look at the next obvious level of support.
In this case, it was not a previous high or low but a psychological level in the form
of the $4000 round number. The weekly timeframe clearly displays a reversal candle
that did not close below $4000, which is a good indication of it being a strong level of support.
Price could still break this level, but for now, it is holding. What we want to see going
forward is a bounce from support and a resumption of the bull trend. A pattern of higher
highs and higher lows will indicate bullishness in the market.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
