S&P 500 balancing on the edge
|Friday brings us the SP500 on an absolutely crucial support and what will happen from here will depend on trading over the next week or even a month.
The SP500 is currently testing the mid-term up trendline, the one supporting the most recent upswing. In addition to that, the price is forming a Head and Shoulders pattern (blue) and to be honest with you, the neckline was broken just now (red). That breakout, in theory, activates a sell signal but of course selling just above the up trendline is maybe not the wisest idea.
What we’re missing for the full sell signal is the price closing a day below the black up trendline and the horizontal support on the 4245 points (yellow). So far, the bearish pressure is clearly visible and buyers may have a problem defending it. The end of the week will definitely be interesting so let’s see what the price will eventually create here, a bullish bounce or a bearish breakout.
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