S&P500 Testing Final Support Level, Correction Ending Soon?

Last week, price saw a strong pullback, in which pushed the price back to test the 50% support level of the channel trend. Despite that, price still rejected a move higher but instead headed even lower. Now price is testing the final support level of the bullish channel , which spans back to the first correction in February of this year. If the market rejects a breakout lower, look for a potential bullish reversal.


S&P500 Testing Final Support Level, Correction Ending Soon? by EmpowerTrader

Relevant Exhibits:

Exhibit 1: IG Client US500 Positioning 

Exhibit 2: XM Client US 30 Wall Street Positioning

Exhibit 3: IG Client Sentiment 

Trade Step-ups:

Bullish Reversal: Price rejects a move lower, look for a potential swing to the topside of the channel. Profit levels to look for are 2830.00 & 2930.00 respectively.

Bearish Breakout: Price breaks the channel trend, look for consolidation below 2670.00.

 

 

 

 

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