S&P critical resistance 3530 - Exit megaphone bull/bear???

30 thg 8, 2020

The rally has pushed its way all the way to the top of the megaphone pattern defined over the last 2 years. In this region, the critical resistance is around 3530. If it can break this resistance line and close above for one or two days, then this market will most likely go full FOMO bull and the next logical stop is 4000. However, if it cannot break this resistance level and the rally corrects below the dotted support line, then the market is going to take a much needed rest. Then it may make another run after a good correction (maybe 3000-3100 range) or it will head towards a much larger correction. Will be interesting to see what plays out of the next few days.