Recently, the index is consolidating between 2120 and 2189 ( ATH ). Now, it has made a bounce at 2120 support. The candle shows the domination of buyers at this price on the US stock market, probably for at least three reasons :
- Presence of an horizontal support, previously resistance (polarity principle)
- Presence of the ascending support
- Match with the 38.2% fibonnaci retracement of the last wave (1998-2189).
Open long position at the current price (2132 points)
Stop @ 2110
Target @ 2160 (to make sure you will be executed if the scenario is realized)
The support area is broken, the dynamic becomes bearish. This analysis is no longer valid and the chart out of date.