Summary:
- US500 trading lower on the day near 2700
- 3 day winning streak under threat
- Price remains above 2680 swing level
The US500 has pulled back a little today as the recent winning streak for US stocks has come under threat. Whilst the declines are fairly small and measured, the market has dipped back below the 2700 level after declining around 20 ticks from its recent highs of 2718. The index has enjoyed a strong run higher of late after hitting a low near the start of the month at 2552. A fib retracement of this impulse can offer potential support levels should price fall further lower with the 23.6% at 2679 of particular interest.
The US500 has paused a little of late after a near 170 point rally in recent weeks. Fib retracements may be seen to offer important levels to watch for possible support should price pull back with the 23.6% at 2679. Source; xStation
Looking at the bigger picture on a D1 chart the market remains in breakout mode above the 2680 level which capped several advance before being broken earlier this week. The last 3 candles have all been green, but if truth be told the bulk of this week’s gains came on Tuesday. This 2680 level coincides almost exactly with the 23.6% fib at 2679 and this confluence of factors may be seen as adding to its significance.
The US500 remains in breakout territory above 2680 – a level that takes on greater significance due to the 23.6% fib being at 2679. Source: xStation