S&P500: Fake Break Out Or More Upside?
Since the start of the week, the S&P500 has been ripping higher and is currently sitting at 2810.92 which is 2.27% higher on the week already. In my previous S&P articles, I have highlighted this region between 2800-2815 as a big resistance level. Yesterday's close was right in the middle of this region, and yesterday's daily candle seems to have given us a white bodied shooting star, but the wick on the candle did give us a new yearly high seen at 2821.
Higher timeframes on the index seem to be pointing to more upside, the monthly timeframe is showing us a nice hammer candle if we close above 2815 this month, there are 12 trading days left of this month. Going into the weekly chart, closing above 2815 will give us another bullish signal, with a nice long bullish marabozu candle, off our weekly support level at 2750. Drilling down into the daily, we can see how well respected our resistance zone has been, yesterday's candle is the 5th drive into the zone, if we keep knocking on the door at this level, we will eventually break it and turn old resistance into new support.
A nice clean daily break above our resistance zone and we could be off to the races for the S&P500. There isn’t much resistance above 2815 until we get to 2875, if 2815 breaks and then turns into support, we could get to 2875 pretty quickly. Another rejection off 2815 then its back down to our support level at 2750. Watch out for price action in this zone area, we could get a decisive move in today's session....