S&P Index Chart Analysis

  • Taking a look at the US SP 500 Chart, we can see that price has been bearish for the past week.


  • Last Friday’s bar formed a bearish engulfing candle, which having not found enough downside momentum, closed at the 78.6% Fibonacci retracement level (middle green arrow). Placing 2 parallel trendlines, we can see that price has also bounced off the bottom of the ascending channel and together with the Fib level, forms a strong support level. In the weeks to come, if price closes above the support level, we can expect it to test the high on the 8th/9th of June (red arrow).


  • If however, price manages to close below the support level, we will likely see the continuation of the downwards momentum, expecting it to test the next support level at the 61.8% Fibonacci level (bottom green arrow).


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