S&P 500 – [What Now After Hitting Our Resistance]
Chart Source: Poems2.0 3rd May 2020
It was a week where the bulls were seemingly in control and a string of good news with some not so bad earnings coming out from the big tech companies. But towards the end of the week, the S&P started to have some profit taking.
From our previous blog regarding the S&P 500, it has actually gone up to the weekly 50ema which we highlighted, the area where we will turn cautious and will be looking out for short opportunities. As the S&P 500 roared through the weekly 50ema, traders were turning bullish and started piling up their longs thinking that market will continue to trend higher. Sadly, S&P 500 made an intra day high of 2972 and started to fall back down.
We are continuing to look for short opportunities and S&P 500 might fall to about 2725 area first in the coming days – weeks and breaking that support might see more downside.
We will update more as time comes. Hope you learnt something from our post and if you’re interested in learning how to use Poems CFD to short the market, do drop us a message.
A trader who only knows how to go long and now short has lost half the battle already! So picking up a new skill during this period is critical!
We also shared a video analysis on the S&P 500 previously, so do head over to our facebook page to check it out!