S&P Index Chart Analysis
- Taking a look at the US SP 500 Chart, we can see that price has been on a strong bullish momentum for the past couple of weeks and is currently close to the all-time high of 3395.5 on 20/2 this year.
- The small inside bar at the end of Friday last week shows the lack of momentum, together with the strong resistance level of the all time high, could signal a possible pullback. The chart also shows an ascending triangle formation where price is currently close to the end of the formation. We can expect a breakout in either direction this week or the coming week. If price were to break the bottom trendline, we can expect price to test the 61.8% Fibonacci retracement level (green arrow).
- If price instead, managed to close above the ATH (red arrow), we will expect a strong bullish breakout, with the ATH then acting as a strong support level.
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