It goes without saying that the bulls have been getting the best of the bears from a macro perspective. But the price action since last Friday has provided the bears with an opportunity. Let’s take a moment to recap that action and look at key S&P 500 technical suppport levels… without the noise.
On Friday, the S&P 500 posted new marginal all time highs, but that was the only good news for traders on the long side. The index quickly reversed and ended about one percent off those highs. Â All in all, not a moment of panic, but when combined with today’s action, definitely a reason to stay focused on key S&P 500 technical support levels.
A couple of changes since my last week’s S&P 500 update: 1) We retested the highs, making 1883/84 formidable resistance. If that is taken out, the flood gates could open… first target being 1915/20. Â 2) BUT, as mentioned above, the S&P 500 broke to new highs and reversed lower. This makes the index vulnerable over the short-term.
Bears will need to take out a couple of S&P 500 technical support levels before a “correction” can be contemplated: 1) 1849 – which was tested this morning 2) Â 1827 – the 38.2 Fibonacci retracement (this is also near the 50 day moving average).
If both of these supports get taken out, I will be watching the 1810 price area as a last stand of sorts. Â Below that is the current uptrend line from last June (around 1770). Â I’ll provide another update later this week should the price action warrant it… up or down. Trade safe.
S&P 500 120min Chart with Fibonacci Support Levels
S&P 500 Daily Chart with Uptrend and Moving Averages
Twitter:Â Â @andrewnyquist
No position in any of the mentioned securities at the time of publication. Â 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.
