Signal Update: The S&P 500 Index (SPX) Hit Our Take Profit Target 2 Days following Our Signal & Is Facing Heavy Price Resistance Now.
The S&P 500 Index (SPX) Hit Our Take Profit Target 2 Days following Our Signal & Is Facing Heavy Price Resistance Now as the 50 day moving average green line is sitting less than 100 points above current price. The rally we have seen so far has been a normal price correction up as market crash down very fast to catch up with the global economy shutdown and now that the initial panic mode is over we should see more normal price behavior that responds to price support / resistance levels more normally. Therefore, considering the declining 200 and 50 day moving average, traders should be careful buying/holding long positions here and better can open SHORT position just under the 50 day moving average (see chart).
April 7 signal: The US S&P 500 Broke out of a Cup & Handle chart pattern and is in a bullish near term momentum up. Our chart below show our near term target price at $2,800. Traders can get long here and expect to hit target in the next few days maximum. In addition keep in mind that the market is in a confirmed long term bearish trend and price strength provides new opportunity to short the market again at resistance level.
