Chart Source: Poems2.0 4th June 2020
Many are still in disbelief as S&P 500 rose over the couple of weeks. From our previous post just two weeks back, we mentioned to stay alert as it was in a consolidation and could breakout either way. S&P 500 chose the upside so as a trader, being flexible is key. It broke out and touched our target of around 3111 and a little bit more before having a small pullback.
So what now? As the S&P500 has been supported by the 5 and 10 ema unless it closes above we’ll have to follow the trend. Around 3130 area is the resistance for now so some pullback might be expected. You can view the chart on our Poems2.0 platform for reference.
In closing, as the word out in the street goes, DON’T FIGHT THE FED! It also means don’t fight the trend, follow the trend as the trend is your friend. =)
We hope our trading blog has shed some light on the market and our readers have learnt something from our sharing.