S&P Taking a Breather

3 мар. 2021 г.

The S&P 500 is still in a long-term uptrend which has been in play since March 2009 and currently
approaching a major resistance level in the form of the $4000 round number. The momentum has
started to slow down slightly as we are seeing a mini consolidation in play.

Just below price we have the 50 simple moving average and price has been hovering around a
resistance level from the high from 26th January 2021. Price has been moving above and below
this level and if we see a bounce off from the 50 simple moving average again then we may well
see price move back above this level.

The recovery from the global pandemic from the peak last year March has seen a move of 75%
so the slowdown in momentum is understandable but now we want to see a resumption of the uptrend.

If we finally see a break above the $4000 round number, which may prove to be a strong obstacle,
then we should see the bull trend continue in both the UK and US stock market.

Through our scans, we are seeing many stocks emerging from breakouts and potentially forming
long-term linear trends which will be confirmed if price uses the 20 & 50 smas as support.

See below for more information on our trading techniques.

As always, keep it simple, keep it Sublime.