The S&P 500 Overview

With the S&P 500 at an ominous position. It will be ready to make a paradigm shift in its course. With the Index being in an upward trend and no history to help concrete resistance levels it was left to speculation and investors to decide.
S&P 500 INDEX Analysis

Between October-November of 2017 we can see that the market was looking for its new high. It showed sideways consolidation for those months between 2558*- 2595*. This was the precursor to the break out that would lead to its high of 2875* in January of 2018. Shortly after in February we see its first retest of this range and a close at 2580*. With an attempt to stay above 2788* from mid February to mid March we can see the second retest of the 2580* level. Seen in diagram A.
With the inability for the index to stay below 2580* it was time to find a new resistance range. Between May and July of 2018 we can see slight sideways consolidation between 2788* - 2700*. By mid July the index could not stay below 2788* and was on its way to its new high of 2935* With a slight resistance range of 2800* - 2840* and 2870* - 2905*. These slight resistances will drive future level ranges. Shown in diagram B.
Between October and mid December of 2018 the index had a mass influx of volatility. With an attempt to break through a slight resistance level of 2635* and unable. The index showed sideways consolidation and an inability to stay above 2788*. Shorty after in a burst of volatility to plunge 285 points from mid December to a rebound by the first week in January of 2019. Shown in diagram C.
As of the end of January 2019 and the start of February 2019 the index continued its rise to break new highs, but not without some resistance from previous levels.With the inability to stay below 2635* the index only had one trend to follow, Up. With the first indications of a pullback on the first week of March 2019. The index was unable to stay and close below 2730*. A resistance level seen previous in 2018. Between Mid March and the beginning of April 2019 we have our second sign of an attempt to break the previous high in January of 2018. There is a consistent resistance range from 2800* - 2842*. Followed by a breakout into an all time high in May of 2019. Shown in diagram D.

Leading into current day index analysis. With the current state of the index there will be a retest of 2732*. If the index is capable of holding above this value it will move up to retest 2785* and continue to 2845*. With a possibility of seeing higher highs. If the index is unable to stay above 2732* it will move down to retest 2635* and continue to 2580*. Shown in diagram E.
*Charts are created with TradingView, our partner in charting. 
-------------------------------------------------------------------------------------------
Written by Nenad Jordanoski, Futures Trader and Technical Analyst.
Email: nj@thetrade.academy
-------------------------------------------------------------------------------------------
Risk Warning: Trading on the Financial Markets, Stock Exchange and all its asset derivatives is highly speculative and may not be suitable for all investors. Only invest with money you can afford to lose and ensure that you fully understand the risks involved. Please remember that past performance may not be indicative of future results. Supplied information is not an advice . Copyright © 2017 - 2019 The Trade Academy™ - All Rights Reserved. ¦Privacy Policy¦ ¦Terms and Conditions¦ 

Previous
Trading Fundamentals - The Core
Next
GER30 Analysis

Write first comment

Email again: