Индекс S&P 500
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S&P Could Make Record Highs After Finding A Support Base

Taking our minds back to February at the start of 2020, anyone claiming a market crash was
happening would have been believed, as we were witnessing fast declines in the global markets.

The S&P alone went done by 35% from February to March 2020, even falling below the weekly
timeframe’s 200 simple moving average.

Global pandemics can have an unpredictable effect on the financial markets. Few companies
were able to avoid the financial impact.

That being said, looking at the stock market from a technical perspective would have positioned
you to minimise losses on open positions prior to the declines with the right trade management strategy.

The markets have recovered nicely since then but pullbacks earlier this month sent alarm bells ringing
and panic set in with the inexperienced investors, assuming again that we were set for a market crash.

What we can identify in the monthly chart shown is that the high and low from 2019 has been acting
as strong support/resistance levels.

The low from 2019 at $2443 held as support in March and April this year. Last year’s high at $3247
acted as resistance in February this year but is currently acting as support.

If price holds at this level, as it is classed as a major support level, it should provide a base and may
be used as a springboard to give price enough momentum to continue the bull trend.

As trends tend to begin around this time of the year, we should start to see bullish momentum across
the board over the coming days and weeks. This is not guaranteed to happen but likely based on
historical market cycles.

We are now waiting for breakouts on high probability stocks in our watchlist.

See below for more information on our trading techniques.

As always, keep it simple, keep it Sublime.
Chart PatternsTechnical IndicatorsSPX (S&P 500 Index)StockssublimetradingTrend Analysistrendfollowingtrendtrading

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