After forming a double top over a key resistance level, the SP500 retraced exactly at the 0.886 Fibonacci level, which is a significant level that is often used in technical analysis. Fibonacci retracements are used to identify potential levels of support and resistance by plotting horizontal lines at the key Fibonacci levels of 23.6%, 38.2%, 50%, 61.8% and 100%. The 0.886 level is considered a strong resistance level, and it is often used to indicate where the price may bounce back and start a new trend.
However, in this case, the market appears to have started a new impulse, breaking above the resistance level and reaching a new recent high at 4020. This suggests that the trend has reversed and that prices are likely to continue to rise in the future. Traders will be closely monitoring whether the price will be able to sustain this upward momentum and hold above the new resistance level of 4020. As always, it's important to keep an eye on the volume and other technical indicators, as well as any relevant news that may impact the price of SP500.
However, in this case, the market appears to have started a new impulse, breaking above the resistance level and reaching a new recent high at 4020. This suggests that the trend has reversed and that prices are likely to continue to rise in the future. Traders will be closely monitoring whether the price will be able to sustain this upward momentum and hold above the new resistance level of 4020. As always, it's important to keep an eye on the volume and other technical indicators, as well as any relevant news that may impact the price of SP500.