Will the bulls continue to dominate the US500?
The bulls have dominated the US500 since the beginning of the year. The market overcame the significant structural level of 2695 at the beginning of February. The 200-day smoothing was the only remaining resistance and the US500 overcame this with a momentum candle. It has now worked its way back up to the 3rd of December 2018 high. The range between 2796 and 2820 could now decide whether prices will continue to rise or whether there will be a correction.
If the bulls remain dominant and the market overcomes this range with ease, then higher prices in the area of 2850 or 2875 could be possible.
If the bears gain control and there is a small correction, then the 200-day line could provide the first support for the market. If this line is not strong enough to support the market, then the next support could be in the 2695 area. The 50-day line is currently in the 2622 to 2630 range and could serve as the final support for a short-term correction. If the market falls through that level, a more significant correction may be imminent.
Today the Chairman of the Federal Reserve, Jerome Powell, will address Congress and give a broad overview of US economic and monetary policy. Although Powell’s prepared comments will be published before the presentation on Capitol Hill, the investor should not completely ignore this event.
US500 Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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