S&P500 Is This The Start Of The Meltdown?
Over the weekend I was going through my analysis as normal, taking a look at the higher time frames and seeing how the weekly candles have closed. I open up the weekly chart of the S&P500 and see a beautiful shooting star, closing perfectly at the lows of the day at 2801.
Avid readers of my articles will note that I have a strong support/resistance area at 2800/2815 on the S&P500. Interestingly enough, the closing price finished just 1 point above our support level at 2800. With the negative pressure was seen in the market on Fridays close, and in Asia’s session this morning (Nikkei down 3.01%), this could be a worrisome sign for the New York open later today.
Taking a look at the weekly chart below, we can see last weeks closure was a very bearish sign for this coming week. The open of this week will give us a clear gauge of whether or not its more of the same or simply a re-test and a continuation of the trend higher. A close after Monday's session below 2800, and we could be in trouble and heading to our next support level seen at 2750 pretty quickly. However, if this level holds and we get a nice bounce, we could look to push even higher and head towards our next minor resistance level seen at 2875.
The Mueller report, in my opinion, was quickly brushed off, saying that there was no connection to Trump in this, releasing the whole report may bring new evidence to light, but that is still up in the air at the moment. Watch for further developments regarding this, any FED announcements and China trade deal as well, as these are 3 big factors in the market currently....