SP500 2943 IS THE MAGIC NUMBER...2018 HIGHS, JUNE 2020 SUPPORT
SP500 flirted with 2943 multiple times in 2018. We double topped in October 2018, sending us lower, and a year later were able to break past it (October 2019). That led us to new all time highs in February 2020.
During the Covid crash, 2943 became support. They built up momentum a bit, trapping bulls, then smashed through 2943 and reach the 2018 lows as support for the March Covid bottom.
In April-May 2020, there was a battle at 2943, and we ultimately broke through it end of May. Irrational exuberance took over and we hit the June highs before a big correction to find support at the breakout number of ... 2943!!
The next target became the February closing high, 3389. We bust through it on the first try in August, hit the September highs, and corrected down. After a fierce battle at 3389, we found support at the highs of June. We could not smash through that support on the first try. So momentum was built, trapping more bulls by passing the February high 3389 in an "attempt" to hit all time highs near 3600. The October trickle down effect completely turned into a waterfall at the former support level of 3389 (February high). Once February high support was smashed through, we found support yet again at....the June high (like we did in September).
Going forward, expect a small bullish move meeting resistance at 3389 to build momentum for a bigger smash down through the June high support to ultimately find support at ... 2943. The June low, which was the former 2018 top, where we broke out in October 2019. This is simply a retest of the breakout from 2019 on a bigger picture. After that, 3600 is not a foreign possibility before more madness in the year 2021.
During the Covid crash, 2943 became support. They built up momentum a bit, trapping bulls, then smashed through 2943 and reach the 2018 lows as support for the March Covid bottom.
In April-May 2020, there was a battle at 2943, and we ultimately broke through it end of May. Irrational exuberance took over and we hit the June highs before a big correction to find support at the breakout number of ... 2943!!
The next target became the February closing high, 3389. We bust through it on the first try in August, hit the September highs, and corrected down. After a fierce battle at 3389, we found support at the highs of June. We could not smash through that support on the first try. So momentum was built, trapping more bulls by passing the February high 3389 in an "attempt" to hit all time highs near 3600. The October trickle down effect completely turned into a waterfall at the former support level of 3389 (February high). Once February high support was smashed through, we found support yet again at....the June high (like we did in September).
Going forward, expect a small bullish move meeting resistance at 3389 to build momentum for a bigger smash down through the June high support to ultimately find support at ... 2943. The June low, which was the former 2018 top, where we broke out in October 2019. This is simply a retest of the breakout from 2019 on a bigger picture. After that, 3600 is not a foreign possibility before more madness in the year 2021.