The index failed yet again to break and close above the bold white declining Resistance, which is effectively the Resistance that has marked all lower highs of the Bear Market. This is far from an ideal scenario for S&P500 buyers. The Support Zone right below already supported once last week and has been serving as either a Support or Resistance since May 30th.
Below that its the bottom of the Channel Up to consider but if broken the price can reach Support Zone B and the dashed declining support.
Closing over the Bear Market Resistance will be extremely bullish for the S&P500, setting a target within the Resistance Zone.
What can help us be ready to trade the correct trend is the RSI, which is trading within a Triangle. The direction of its breakout can potentially reveal the index's next move.
Follow us, like the idea and leave a comment below!!