The stock market in the United States rally during the week, but as you can see by measurement of the S&P 500, we have reached towards the top of the previous couple of candlesticks on the chart. The fact that we close this high tells me that we are likely going to see a bit of follow-through and take off to the upside. The 3150 level or at least somewhere near there, represents quite a bit of resistance. If we can break above the top of that level, it is likely that the 3200 level would then be a target. If we can break above the 3200 level, then the market is likely to go much higher.
What I do like about this candlestick is that we kept most of the gains, which is a much better sign than the previous couple of weeks. I believe that the 3200 level is a major barrier, so if we were to break above there then it is likely we go looking towards the highs again.
S&P 500 Video 06.07.20
To the downside, the 50 week EMA continues come into play just below the 3000 level which in and of itself is a support level. If we were to break down below the 50 week EMA, then it is likely that the market goes looking towards the 2800 level. That is an area that has been crucial for some time now, so I think that is about as low as we go even if we do break down, something that I am not looking to happen anytime soon. I do believe we will eventually break out to the upside.
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This article was originally posted on FX Empire
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