The S&P 500 is now up 28% since the sharp decline we saw back in February/March 2020
following the COVID-19 pandemic. This has been a good recovery for the market so far but
there are still some hurdles on the horizon.
Price is now comfortably above the 20 simple moving average and is finding support there as well.
If the 20sma holds strong as support then it may give price another boost of momentum to the upside.
If price finds strength then we want to see it break the major levels of resistance in its way.
The first one is the $3,000 round number which is a strong psychological zone of support/resistance.
The next one being the high from 26th July 2019 at $3,027 which lies around the same area.
With price breaking these levels, they should turn to support and give price a base to climb even higher.
It is best to stand aside for now as anything can happen. Waiting for breakouts will give us that extra bit of
confirmation that the uptrend is resuming.
If price chooses to decline further, then the breakdown of support levels will confirm a bear trend is in play.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
following the COVID-19 pandemic. This has been a good recovery for the market so far but
there are still some hurdles on the horizon.
Price is now comfortably above the 20 simple moving average and is finding support there as well.
If the 20sma holds strong as support then it may give price another boost of momentum to the upside.
If price finds strength then we want to see it break the major levels of resistance in its way.
The first one is the $3,000 round number which is a strong psychological zone of support/resistance.
The next one being the high from 26th July 2019 at $3,027 which lies around the same area.
With price breaking these levels, they should turn to support and give price a base to climb even higher.
It is best to stand aside for now as anything can happen. Waiting for breakouts will give us that extra bit of
confirmation that the uptrend is resuming.
If price chooses to decline further, then the breakdown of support levels will confirm a bear trend is in play.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
