S&P Wedged Between Support & Resistance

SPCFD:SPX   S&P 500 Index
The S&P 500 is showing good progress despite having a bearish start to the week. The first thing
we want to look at when we identify declines against the trend are levels of support below price.
If support is strong enough, then it should be able to stop price from declining further.

Below price we have the 20 & 50 simple moving averages as well as the previous all-time high from
February this year at $3393. When there is a cluster of support around the same zone, it gives us an
indication that the level is strong and price usually bounces off these levels.

The S&P still remains in an 11-year bull trend and although price is below the current all-time high
at $3588, the trend still looks good for a continuation as price is forming higher highs and higher lows.

The shaded area may form a consolidation zone as it lies in between major support and resistance levels.
A breakout of either of these levels would suggest a potential continuation in that direction.

The bias is for a breakout of resistance as the overall trend is bullish and this should be followed by
a strong bullish surge in the stock market.

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