S&P 500 Breaks Major Support!

23 мар. 2020 г.

The global markets have taken a turn for the worse lately and the S&P 500 is no exception.

Since 2009, the monthly timeframe has been showing higher highs and higher lows.
When a low is broken then this usually indicates that the prior trend has come to an end.

The weekly timeframe shows that price has broken and closed below a major previous level
of support at $2,346, indicating a potential end to the bullish trend and the start of a bearish trend.

If a bear trend establishes itself then we can expect to see weakness in stocks across the board.
In conditions like these we want to look for the weakest stocks once shorting opportunities
start presenting themselves.

We will have a clearer picture once the candle for March closes on the monthly timeframe.
If March closes below $2,346 then this will further reinforce that the trend has ended.

The first major support level below price is the $2,000 round number which price may gravitate
towards going forward.

We will be looking at some shorting opportunities in our free Facebook group and we also cover
how to do this in our 4-Part series from the link below.

See below for more information on our trading techniques.

As always, keep it simple, keep it Sublime.