S&P 500 Index: Faces fierce resistance as Remdesivir hopes battle COVID-19 data – Confluence Detector
|The S&P 500 Index is torn between two opposing forces – hopes for a coronavirus cure after Gilead's announcement of progress with Remdesivir, and concerns about rising COVID-19 cases in the US. How is the stock index positioned on the chart?
The Technical Confluences Indicator is showing the S&P 500 Index is facing fierce resistance at 3,164, which is the convergence of the Fibonacci 23.6% one-month, the previous 15min-high, and the all-important previous weekly high.
If it breaks higher, the next target is 3,194, which is the meeting point of the Bollinger Band one-day Upper, the BB 4h-Upper, and the Pivot Point one-week Resistance 1.
Support is at 3,157, which is the confluence of the Fibonacci 61.8% one-day, the SMA 5-15m, and the BB 4h-Middle.
Further down, the downside target for stock bears is at 3,126, which is where the BB 15min-Lower and the Fibonacci 23.6% one-month converge.
S&P 500 Chart
Here is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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