S&P 500 price moves to test initial resistance target
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US 500 (S&P 500)
The S&P 500 has now moved within sight of the 6020 resistance target following the bullish price reversal highlighted in our previous note. Traders who have been long into the move might consider trailing their respective stop loss levels to gap support at 5965. This should enable initial profit from the move to be secured while looking to squeeze out further gains. The tight stop suggestion from current levels considers the market now having moved back into overbought territory.
US 500 (S&P 500) - previous
Marked with the red arrow we see that the 5850 level has held up with a bullish hammer candlestick pattern suggesting a reversal off this level. The previous all-time high at 6020 becomes the initial resistance target from the move. A close above this level would suggest overhead trend line resistance at 6200 to be a further target from the move.
Should the price instead move to close below the 5850 level, the bullish reversal would be deemed to have failed.
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