S&P Index Chart Analysis
- After grinding up in a tight channel back up to the March high, the market broke up on the release of unemployment numbers on Friday.
- In the backdrop, worsening riots in the US, rekindling of the US-China trade wars and sanctioning of some ships involved with Venezuela point to a divided world. However even with all these seemingly negative events, the market remains unfazed.
- Some people think that this is due to the US pumping liquidity into the market. However, would that be sustainable?
- Bulls who have followed the trend would have made a good sum and will start taking profits around the 3200-3220 range which is near the top wedge line. At the same area, Bears may go short thinking it is a resistance zone. This may result in a short term reversal.
- Once Bulls are out, they will wait on the side to buy at a lower price. Next support is around 2800 and that may also be a take profit zone for Bears who shorted higher. A trading range may thus form.
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