The S&P 500 Conundrum of 278s
The S&P 500 has been moving sideways since peaking in February of 2018. The all-time high was at 284.21, the correction support level was at $250, since then it has been churning on 278's resistance, and as of this week, this is the 4th retest of the resistance level. (At the time of this writing, after hours, the SPY is down by -1.30 points or -.46%; retracing $1 below resistance) The key question now is where it is heading next? Correction or continuation of a rally towards all time high level? No one knows for sure, but at this market levels, keep your market shield ready, as if it fails on 278's we could retest the 250's level of support again. Remember, a pullback or breakout has a process before it comes into full realization. It could take weeks, make higher lows or lower highs before it makes a significant move of +/- 1% intraday basis.
The chart below will reflect the 6 weeks chart of S&P 500 or #SPY, what's so cool about it is that the 278's resistance is so vivid, also near-term support will be at 273, should it fail to trade above 279.
- Resistance - is a level where sellers show up; profit-taking; short sellers initiating position; or where pullback starts to take place
- Support - is a level where buyers show up; short covering area or the beginning of an uptrend begins
Why does S&P 500 or #SPY matters in the market?
- The S&P 500 is a U.S. stock market index that is composed of 500 large cap publicly listed companies.
- It is considered as the "ocean of the market, the boats are the stocks" if the S&P 500 pullback, it is highly likely your stocks will fall into a correction as well.
Twitter: @ Kris_tin27