S&P 500 – Major Support Levels Approaching At Both 2800 and 2730
Relevant Key Levels: Support at 2860-90, 2800, 2690-2730. Resistance at 3030, 3000, 2960 and 2910.
Price Action: The potential fakey mentioned in our prior members update didn’t trigger as prices collapsed back towards major support levels. Inside bar forms late last week right under a major resistance level (next direction is uncertain ). Large Pin Bar Signal with tail touching the low 2800-25 support area had triggered a move higher mid last week (not a short term event area). Price broke down aggressively from a large bearish Pin Bar that formed at 3030 resistance several weeks ago.
Current Notes: The short term trend has shifted to neutral after the recent crash lower, however prices tested and held the 2800 major support area and bounced, thus the long term bias remains bullish.
Potential Trade Idea: We will consider buying on a clear price action buy signal (ideally a pin bar on the daily chart) around the 2805-2825 OR 2730 support area.
Nial Fuller is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 20,000+ students since 2008. Checkout Nial's Blog - Learn To Trade The Market.
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