SPX finally rises, tests strong resistance


Equities reversed their direction on Tuesday and rocketed higher, with EU indices up 7%, erasing more than 50% of yesterday's losses. In comparison, US benchmarks were 5% stronger, also wiping more than 50% of Monday's decline. 

The SP500 index was seen 5% higher during the Frankfurt session, trading at around 2,870 USD and jumping above first strong resistance. This looks like the worst is over, and bulls might be in charge yet again. 

The index is now testing last week's lows near 2,880 USD, and this is the critical resistance for short-term traders. If the price jumps above this level, we could see a robust rally targeting 2,980 USD or 3,000 USD. Actually, these targets are 4% above the resistance, but considering the current volatility, we could see them today, if bulls will be on the move.

If the index manages to climb above 2,980 USD, the short-term outlook could change to bullish. 

Alternatively, if Wall Street will be in a bearish mood, the intraday supports are seen at around 2,820 and 2,760.

Volatility remains exceptionally high, but it seems that today will be a powerful bullish day, which might mean the latest decline could be over. At least for now.

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