S&P500 Could Fall Back to Test Key Support

The S&P500 -0.75% index had a strong recovery last week as price surged from October lows. In which we saw the index gained by as much as 9%. Now price has been trading downwards ever since, indicating a pullback. In addition, there is also a sizable GAP that has yet to be filled back in October. Thus, look for a continued pullback before a another bull swing occurs.



S&P500 Could Fall Back to Test Key Resistance by EmpowerTrader


Trade Step-ups: 

Bearish Pullback: Price continue its move lower to fill in the GAP. GAP filled at 2680.00.

 

Bullish Reversal: Price rejects a break to lower support levels, look for a move to the topside of the channel.

Relevant Diagrams:

Diagram 1: IG Client S&P500 Positioning

Diagram 2: XM Client US30 Positioning

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