The S&P 500 has made a good recovery so far since the declines from February & March of this year, but it still has some way to go before we can confirm the resumption of the bull trend.
The December 2018 low is a strong level of support which helped to push price back up and through the 200 simple moving average.
So far this week we are seeing an indecision candle on the weekly timeframe so it is anyone’s guess which direction the market will move next.
If price moves higher then it still has to first encounter the $3,000 round number which is a psychological area of resistance.
If price moves lower then we have the 200sma below price which is a strong support level. If price is able to trade below this level then we may well see further moves to the downside and a potential bear market.
We don’t want to predict the next move because there is the potential to lose a lot of capital. We want to allow price to dictate the next move then take positions once a trend is established.
See below for more information on our trading techniques.