S&P 500 breaks down the up channel - range or reversal?
21 Apr 2020 recap - S&P 500 futures (
ES1!) broke below the up channel since the bottom from 23 Mar 2020 and a key support level around 2750 with increasing supply, as spooked by the meltdown in oil price.
This is a change of character for the uptrend, suggests that the up move could at least stop for now, at minimum to go into a trading range if not reversing to test the the lower support levels.
Should S&P 500 commits above 2750, this would violate the bearish case and a trading range between 2720–2880 is likely.
Bias - down
Key levels - Resistance: 2780, 2800, Support: 2750, 2717, 2635
Potential setup - look for a test of the of the break down around 2775–2800. A rejection from this level could be a good entry for short. First target at the swing low at 2717, second target at 2635. Stop loss at 2791.
ES1!) broke below the up channel since the bottom from 23 Mar 2020 and a key support level around 2750 with increasing supply, as spooked by the meltdown in oil price.This is a change of character for the uptrend, suggests that the up move could at least stop for now, at minimum to go into a trading range if not reversing to test the the lower support levels.
Should S&P 500 commits above 2750, this would violate the bearish case and a trading range between 2720–2880 is likely.
Bias - down
Key levels - Resistance: 2780, 2800, Support: 2750, 2717, 2635
Potential setup - look for a test of the of the break down around 2775–2800. A rejection from this level could be a good entry for short. First target at the swing low at 2717, second target at 2635. Stop loss at 2791.
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