S&P 500 closes above resistance of 4550 which is now the new support level to mark on your chart

The shooting star candlestick today is a little concerning but the main point is that the S&P 500 must stay above the breakout point near 4550 which is the new support level. The reversal of roles from resistance to support or vice versa is an important concept in technical analysis.

Daily chart of the S&P 500

The following chart is one of the breadth indicators. It points out that 64.73% of the S&P 500 stocks are trading above their 50-day moving averages. This is up from 25% at the beginning of October. This breadth indicator is confirming the recent upward trajectory of the index. This indicator needs to move up with the index . 


Technical Analysis is about avoiding snakes and catching ladders

Note: This technical analysis is for educational purposes. Please conduct your own analysis or consult a financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stocks or indexes.


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