Monday 25th November marked another record-breaking day for the S&P 500.
It looked bad for the Index when price started to decline on September 19th 2019
where we saw a 168 point drop over a few days.
Something came over the buyers who were able to drive price back up, forcing its way
through the previous all-time high at $3,028 on October 28th 2019.
We expected a retest of the previous all-time high turned support but that did not
occur as the current trend has proven to be a strong one.
The previous rallies went up 10% to 25% and the current rally may also do the same which stands at 9% so far.
The current breakout is a sign that the buyers are currently in control because this
represents price breaking through resistance. Price is above the 200sma, giving us a bullish bias.
The pullback and consolidation zone did not hold price back for too long as the longest it
was able to delay price from rising was 3 months. This should be nothing compared to the potential
trend that may emerge from current price activity.
As price is creating new all-time highs there are no previous levels of resistance to watch out for.
The only area of resistance we need to be wary of is the $4,000 round number which may act as
a psychological area of resistance. This area is over 800 points away so this is not something
we need to be concerned about just yet.
With this breakout, we can continue to look for long opportunities in both the
US and UK stock markets with confidence.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
It looked bad for the Index when price started to decline on September 19th 2019
where we saw a 168 point drop over a few days.
Something came over the buyers who were able to drive price back up, forcing its way
through the previous all-time high at $3,028 on October 28th 2019.
We expected a retest of the previous all-time high turned support but that did not
occur as the current trend has proven to be a strong one.
The previous rallies went up 10% to 25% and the current rally may also do the same which stands at 9% so far.
The current breakout is a sign that the buyers are currently in control because this
represents price breaking through resistance. Price is above the 200sma, giving us a bullish bias.
The pullback and consolidation zone did not hold price back for too long as the longest it
was able to delay price from rising was 3 months. This should be nothing compared to the potential
trend that may emerge from current price activity.
As price is creating new all-time highs there are no previous levels of resistance to watch out for.
The only area of resistance we need to be wary of is the $4,000 round number which may act as
a psychological area of resistance. This area is over 800 points away so this is not something
we need to be concerned about just yet.
With this breakout, we can continue to look for long opportunities in both the
US and UK stock markets with confidence.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
