CFD Update: SPX500 holds at support but will we see a rally?
Today we’re looking at the SPX500 after buyers re-held long-term support yesterday.
Until yesterday, hold trade had been one way on the SPX500 as markets continued to deal with the ongoing tensions between Ukraine and Russia. Over the last three weeks, just over 5% was wiped off the index as investors fled back to safety. Yes, yesterday’s developments were not the best for the markets, but it looks like the lesser of two evils.
Price re-held at 4270 long-term support maintaining the level that’s held since July 2021. For now, this is our line, while things in Europe continue at the current situation we hope to see this level continue to hold. This could feed further value buying and validate the new V pattern that we’re seeing set up. We want to see further buying to really start confirming this pattern. If buyers can get a new leg higher going, we will see 4470 as potential resistance.
If things escalate in Europe and price breaks key support, it could potentially resume the current downtrend but also confirm the SPX500 in official correction status.
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