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Why the S&P 500 is on the edge
After a smaller than expected correction of only 38.2% from the May peak the S&P 500 has bounced back strongly and is testing the strong resistance at around 1,654 – the June 18 high. A close above that level could ignite a new rally taking the Index to new highs possibly above 1700-1735 short term and possibly even higher by the year end.
If it gets rejected - and it certainly has problems at the moment with indicators such as the RSI still showing bearish sentiment - then it could fall back to test the 55-day moving average.
If that happens then a break below June low at around 1,560 could further fuel a bearish move lower.
01:36 minutes
Tags: bearish, index, indicies, momentum, rsi, s&p, s&p500, technical analysis, tradingfloor.com