The S&P 500 Approaching 3 Major Hurdles!

11 พ.ค. 2020

It is coming up to crunch time for the S&P 500 as it approaches a pivotal point that
could determine the next move in the markets.

From the 23rd March 2020 low at $2,191 price has climbed up 34% which is an extraordinary
recovery considering how fast price fell in February & March of this year.

On the surface, it appears that price will continue the bull trend but on closer inspection, there are
some hurdles in the way of price, 3 major ones to be exact.

We have the $3,000 round number which is a strong psychological area of resistance and around that
level we also have the 200 simple moving average. This moving average determines our trend bias and
if price can move back above it then we will look for long opportunities in the markets.

We also have the resistance from the 26th July 2019 high which is above price. Price may reverse at this
cluster of resistance but if it manages to break above this level then we are likely, but not guaranteed,
to see a resumption of the bull trend. The reason being is if the buyers are strong enough to gather enough
momentum to break through these obstacles then they should have a simpler job pushing price higher to
create new all-time highs.

We shall watch the markets over the next few days and weeks to see how things play out. Whether the market
moves higher or declines, we shall remain ready to take long or short trades. You can find out more about how
to do this in the link for our 4-Part Series down below.

See below for more information on our trading techniques.

As always, keep it simple, keep it Sublime.