S&P 500: two scenarios

What's on

The stock market seems to be on a bullish track now. The S&P bounced upwards from the support of 3870 where the three Moving Averages were converging and currently is flirting with the four-week resistance of 3935. What to do now?

Mid-term action plan

Watch how the index behaves against the resistance of 3935

Bounce downwards

Factor in a possible downward reversal at 3935 like it happened on February 25
Noting that we’re in a bullish trend now, if a bounce downwards happens, it will likely send the index either to the support of 3900 or 3870 before bulls take over again

Punching through

If no bearish reversal pattern forms on lower timeframes around the resistance of 3935, it’ll likely be crossed
Assume that upon crossing, the S&P 500 will go straight to 3960
At the resistance of 3960, a reversal downwards may happen – factor in this potential and prepare the support of 3935

S&P500H4.png

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stocks market

technical analysis

s&p500

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Author: FBS Analyst Team

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