S&P 500 technical
The S&P 500 experienced a heavy rejection yesterday caused by an area of multiple resistance:
- main down trend-line
- upper limit Bollinger bands
The first support was found at the Kijun. And the next supports are near already:
- 3.919 - 38,2%
- 3.914 / 3.902 - EMA(50) and EMA(20)
- 3.889 - previous high
Therefore we might expect that the correction is not completed yet. It is possible, that the gap might get closed. If that closure gives some support, a potential correction could be completed, else we might see further pressure down.
The index has been trading during the previous two weeks in an accumulation zone somewhere between 3.791 and 3.837 with low volume. The area above 3.700 has some good support by 61,8% at 3.724 and the weekly EMA(200) at 3.710.
- 3.837/791 - accumulation zone
- 3.724 - 61,8%
- 3.710 - EMA(200)
From here the index could build up some momentum to the up side, playing the narrative "lower inflation pressure, less aggressive FED, less sharp potential recession".
The resistance on the up-side is currently build up by a combination of EMAs and falling upper trend-line parameters.
- 4.014 - EMA(50)
- 3.980 - falling upper trend-line