Has The S&P 500 Formed A Support Base?
The S&P 500 suffered a heavy blow when it started to plummet 29% from late February 2020
to where price currently lies.
Despite recent events, the market is still looking bullish overall and will remain this way unless
major areas of support are broken.
This Index has been in an uptrend since 2009 and currently has an all-time high of $3,393 formed
on February 19th 2020. Due to recent global events, the buyers failed to keep price from declining
and fear swept through the markets causing a near-vertical drop.
The uptrend is still intact for now as the S&P is creating higher highs and higher lows. The first
indication that we may be entering a bear trend is if a previous low is broken.
The previous low, in this case, is from the low of December 2018 which stands at $2,346.
A break below this level will indicate the potential start of lower highs and lower lows which is the
pattern for a bear trend.
If price has found support then we want to see price find momentum to the upside. At the moment,
price is above the $2,500 round number which is also acting as support.
Right now, the near future in the markets in uncertain which is why we want to stand aside until
the dust settles and there is a clear trend direction.
Let the dumb money fight it out and only look for positions in stocks when the smart money
sees high probability investing opportunities.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
to where price currently lies.
Despite recent events, the market is still looking bullish overall and will remain this way unless
major areas of support are broken.
This Index has been in an uptrend since 2009 and currently has an all-time high of $3,393 formed
on February 19th 2020. Due to recent global events, the buyers failed to keep price from declining
and fear swept through the markets causing a near-vertical drop.
The uptrend is still intact for now as the S&P is creating higher highs and higher lows. The first
indication that we may be entering a bear trend is if a previous low is broken.
The previous low, in this case, is from the low of December 2018 which stands at $2,346.
A break below this level will indicate the potential start of lower highs and lower lows which is the
pattern for a bear trend.
If price has found support then we want to see price find momentum to the upside. At the moment,
price is above the $2,500 round number which is also acting as support.
Right now, the near future in the markets in uncertain which is why we want to stand aside until
the dust settles and there is a clear trend direction.
Let the dumb money fight it out and only look for positions in stocks when the smart money
sees high probability investing opportunities.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
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