- US indices moving higher today
- US500 bounced from long term trendline support
- 2430 potentially key support level; all-time high at 2488 possible resistance
Last week saw the largest intra-day decline in the US500 in almost 3 months as investors rushed for the exit door on Thursday amidst an increasingly uncertain geopolitcal backdrop. Despite breaching the week’s low on Friday the market found some buyers and they managed to recover the declines slightly with a green candle printed.
If we take a Fib retracement from the record high seen last Tuesday we can see that the market has just recovered over 50% of the decline. Fib levels to keep an eye on for possible reversal or breakout signals are the 61.8% and 70.6% at 2465 and 2475 respectively.
The US500 has now recovered more than 50% of the declines seen since making an all-time high of 2488 last week. Source: xStation
Friday’s low of 2430 now becomes a key level to watch as not only did it mark last week’s lowest print but it also coincides with a rising trendline from the start of the year. This trendline has been tested on several occasions previously and each time buyers have stepped in and defended it. A break and close below it would be a clear negative development and could see a swoon down to 2400 and even 2345 should it give way.
The US500 declined strongly last Thursday but the market managed to hold above a rising trendline from the start of the year. Source: xStation