S&P 500 Index Technical Commentary – May 6th to 10th, 2019
As the USA stock markets pull back toward major support levels this week, we could be presented with a potential buying opportunity in the at the 2800 technical support level.
The current trend on the S&P 500 index is bullish. In recent weeks prices have surged higher and retested the key 2946 resistance zone. Late last week, prices staged a sell off, however we quickly saw a recovery back toward the recent highs, a sign of just how strong the market has been lately. Early this week prices have collapsed back toward the mid 2800s which could provide an opportunity for traders this week.
The long term bias on the S&P 500 index remains quite bullish above the 2690 to 2730 long-term technical support range. Our current strategy of choice would be to consider getting along on any weakness around the 2800s to 2860s short-term technical support range. We will be carefully watching for pullbacks in price this week to consider re-entering the current bull market.
There is currently no price action signals that traders should be aware of, however this week traders can stay on high alert for potential price action buy signals around the aforementioned key support levels.
A potential trade idea we are watching for this week would be to consider waiting for a clear price action buy signal from within the 2800 to 2860s short-term support range before committing to fresh long positions.
The key technical chart levels to watch out for this week are 2800 and 2860 Support and 2946 Resistance.
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