When stocks trend higher, investors enjoy the spoils.
Especially toward the end of the trend (on any timeframe). And it becomes easier to notice the “latter” stages of a trend in the era of Twitter. Why? Because the cowboys come out.
In short, here’s what happens: Investors doubt the recovery… then they kinda accept the recovery, then they fully embrace the recovery.
We are at the latter stage of this rally. Futures are pointed much lower for Thursday and time may be up on this 11 week rally. Today’s chart is simple: just a chart of the S&P 500 Index as it touches its open gap from the start of the market crash. This gap looks to be strong resistance.
Note that the following MarketSmith charts are built with Investors Business Daily’s product suite.
I am an Investors Business Daily (IBD) partner and promote the use of their products. The entire platform offers a good mix of technical and fundamental data and education.
S&P 500 Index Chart
I shared this chart on twitter (see tweet below). Note that 3000 is initial support, with 2835 being the current 38.2 Fibonacci retracement.
$SPX $SPY S&P 500 back at the scene of the crime. #IBDpartner
— Andy Nyquist (@andrewnyquist) June 10, 2020
Time for a pause at the open gap? 3000 initial support, 2835 (current 38.2 if deeper pullback). @IBDinvestors –> https://t.co/Wi6d7P5Fu2 pic.twitter.com/wLiDCBSJy8
Be safe out there.
Twitter:Â @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
