SP500 having some issues with maintaining the uptrend


The SP500 index was down for three days yesterday, but late-day ramp pushed the index into positive territory. Thursday's candle now looks like some reversal bar. On Friday morning, equities were consolidating, and the SP500 index was flattish, with only minimal volatility during the Asian session.

It would appear that the combination of the 61.8% Fibo retracement level along with the 200 EMA seems to be a difficult task for bulls. The index has tried to breach this resistance (near 2,940) two times now, but so far unsuccessfully. 

On the other hand, dips are bought, and the 50% Fibo level, along with May's lows, stopped the index from falling yesterday.

Until a clear break from this range occurs, we could see some consolidation between 2,940 USD and 2,780 USD. 

If we see a bullish breakout above 2,940 USD, the bullish trend will likely continue, with the next target at 3,000 USD.

Alternatively, a bearish breakdown below 2,780 USD could lead to further weakness, targeting the 38.2% Fibo level at around 2,645 USD. 
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.