S&P index starts to work on topside target
The US stocks have continued to run higher, with the major indices trading at new session highs.
The S&P index is currently trading up 72 points or 2.64% at 2834.63. Take a look at the daily chart, the price has gapped above its 50% retracement at 2792.69. And also moved above the high price from last week at 2818.57 and the swing low going back to August 2019 at 2822.12. The next upside target would be the October 2019 swing low at 2855.94. The low from February 28 is also right around that level at 2855.84.
Honestly there are a lot of targets that the S&P index is moving toward. In addition to the ones mentioned above the:
- there is a gap between 2882.59 and 2901.54 from March trading.
- In between the gap levels sits the 50 day moving average at 2891.36 currently
- above those levels is the 61.8% retracement at 2934.49.
So there is a lot of levels to get through. However market sentiment remains positive on hopes that the coronavirus risks are lessening and countries get ready to reopen.
Of course, what we experience today may not be what happens tomorrow. So what would hurt the what is looking good so far today?
Getting back below the 50% would be a worry from a technical perspective would be one concern. Another would be not being able to extend above the 50 day MA.
Honestly, this whole area between 2792 and 2934 is home to a lot of technical levels that could upset the bullish apple cart, or give the bulls more fuel. If the market can tick off the aforementioned targets, all is good. There is a chance the optimism stalls in area too as risk can be defined and limited AND/OR the news is not as good as expected. So be aware.
For now, the buyers and optimism is on the up swing.