Hi,
After dropping around 2200, the price of the S&P 500 got a pretty decent pump upwards.
The pump has been pretty strong but technically, it looks like it might find an end because the current resistance is quite heavy for those kinds of market situations.
I will say that in the next weeks the S&P 500 price may start to correct back downwards. A lot of unemployees, a lot of questions and etc.
The fundamental research is your decision but for me, as technical analysts, it looks like the current price area can start a correction back to the lower levels. From the current price action I cannot say how low it can go but for those who are looking entries for stocks - you can wait, you will get those needed stocks with a better price than they are right now.
Technical criteria for the correction downwards are:
1) AB=CD equal waves from this year's bottom and the D point is inside the red box.
2) Fibonacci retracement 62%, known as a Golden Ratio and it is also a pretty strong resistance indication inside the red box.
3) Fibonacci Extension 162% lands into the marked rejection area.
4) The 2018 high can play an important role inside of it, to add strength to the mentioned resistance zone.
5) Simply, the strong price level marked as an orange horizontal line. It has been a clean resistance, it has been clean support and definitely it shows that investors might be interested in this level.
6) Daily EMA 100&200 are playing an important role inside of the strong resistance zone which stays between 2850-3000
7) Weekly EMA 50&100 acts as resistance levels.
8) Just in case the round number 3000. It is the final level of this box which can act as resistance but at the moment I don't think it might reach there for a while - obviously never know ;)
So, a lot of signs from the recent price action are pointed to the marked red box which can produce a short-, mid-term retracement downwards.
As said, for those who like to jump into a current "Bull run", do not
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Regards,
Vaido
After dropping around 2200, the price of the S&P 500 got a pretty decent pump upwards.
The pump has been pretty strong but technically, it looks like it might find an end because the current resistance is quite heavy for those kinds of market situations.
I will say that in the next weeks the S&P 500 price may start to correct back downwards. A lot of unemployees, a lot of questions and etc.
The fundamental research is your decision but for me, as technical analysts, it looks like the current price area can start a correction back to the lower levels. From the current price action I cannot say how low it can go but for those who are looking entries for stocks - you can wait, you will get those needed stocks with a better price than they are right now.
Technical criteria for the correction downwards are:
1) AB=CD equal waves from this year's bottom and the D point is inside the red box.
2) Fibonacci retracement 62%, known as a Golden Ratio and it is also a pretty strong resistance indication inside the red box.
3) Fibonacci Extension 162% lands into the marked rejection area.
4) The 2018 high can play an important role inside of it, to add strength to the mentioned resistance zone.
5) Simply, the strong price level marked as an orange horizontal line. It has been a clean resistance, it has been clean support and definitely it shows that investors might be interested in this level.
6) Daily EMA 100&200 are playing an important role inside of the strong resistance zone which stays between 2850-3000
7) Weekly EMA 50&100 acts as resistance levels.
8) Just in case the round number 3000. It is the final level of this box which can act as resistance but at the moment I don't think it might reach there for a while - obviously never know ;)
So, a lot of signs from the recent price action are pointed to the marked red box which can produce a short-, mid-term retracement downwards.
As said, for those who like to jump into a current "Bull run", do not
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Regards,
Vaido