S&P 500 moves above the 50-day sma and 1950 resistance

Tall shaven head and shaven bottom candlestick is a graphical representation of the powerful 2.39% upswing today. Need to look for follow through on Wednesday
S&P 500 Daily Candlestick Chart showing the move above the 50 day simple moving average.

S&P 500 Daily Candlestick Chart

Some points from the above daily chart of the S&P 500:

  • A strong move back above the 50-day sma.
  • Closed above resistance of 1950.
  • I posted a chart for the break below the 50-day on Monday.
  • What a difference a day makes!
  • The shaven head and shaven bottom candlestick is a graphical representation of the move.
  • Shaven head represents a close at the high of the day.
  • Shaven bottom represents the open as the low of the day.
  • In other words, no dithering.
  • The market opened at the low and closed at the high
  • Bodes well for a follow through on Wednesday.
  • The volume is the fuel that drives the market. Must have volume in an uptrend. Volume was ok today.
  • If the break holds, the next resistance point is 2000.
  • A break above 2000 indicates a test of the 200-day sma.
  • And, …………

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Risk on sectors dominated the action today

S&P 500 Sectors

S&P 500 Sectors

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“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

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