These are two numbers you want etched into your brain over the next 14 hours as they could provide a pivotal direction for the S&P500 .
As we can see the has been in a downtrend since its peak in March of 2020 and this week, the bulls may have ran out of gas as they have failed again to make a higher high after valiantly breaking resistance to the upside and causing quite a scare in the markets earlier this week.
But since then, the has been beaten back down below resistance and finds itself approaching a key . This is the 15.08 basis point we mentioned at the start and this is also the level that prevents us from getting to excited about the current rally in the markets just yet.
If the bears ( S&P bulls) fail to penetrate the 15.08 level, preferably THIS week, it will still be game on for the bulls as a spike back up to retest our 21.88 price could ensue. Not to mention, the bulls have a macro edge with 3 consecutive higher lows that go all the way back to 2017.
That means the range/zone that the S&P Index is in currently is not to be taken lightly as it has clearly served as the main battleground between overall market bulls and overall market bears in the fact that a confirmed break on the weekly ABOVE resistance = market dumps, and confirmed breaks on the weekly BELOW support = market pumps.
As already mentioned, the close tomorrow could finally give traders an early clue on what the macro direction of the markets will be in the foreseeable future. Stay tuned.