Back above 100 day MA, 50% retracement and topside trend line
The S&P index has moved above a key technical area today. The index is up 23.4 points currently or 0.87% at 2721.09.
The key area was defined by the:
- 100 day MA at 2706.33
- The 50% of the 2018 trading range at 2702.78, and
- A trend line connecting the January and March highs at 2708.
The index today opened in between that 2702-08 are at 2705.02, dipped to a low at 2704.54, and has moved higher. The peak reached 2726.11 so far.
The break above the cluster of resistance is a key breakout. Stay above the area, and the buyers are in control. The index can explore higher.
Move back below, and the buyers can easily turn the beat around. In April, there two closes above the 100 hour and 50% level, but that move lost momentum and failed. The good news about today’s break is the low stalled ahead of the lowest technical level and based there.
The buyers are making a bullish play. Can they keep it up? The price action and technicals will help tell the story.