The S&P 500 has found the 3000 level as a bit of a magnet for price as you can see over the last couple of weeks. During this past week, we have rallied all the way to the 3150 level but found it quite a bit of resistance and ended up forming a bit of a shooting star. That being said, the 50 week EMA is sitting just below and of course the 3000 level is as well.
S&P 500 Video 29.06.20
These are two different reasons to think that perhaps there might be some support. Even if we break down below the 50 week EMA, I think we only go down to about the 2800 level, which should be supportive as well. The market is now starting to struggle with the idea of whether or not the coronavirus is going to continue to be an issue and if it is getting worse.
The jobless situation the United States is not helping the situation either, but at this point one thing that has been clear: if the market selloff too much the Federal Reserve will step in and do something to make them rally again. We are starting to see retail traders do ridiculous things, which is almost always the sign of the top. However, we do not necessarily have the complete catalyst yet, but something tells me it is coming. If we can break higher from here though, the 3200 level will be an area that is rather crucial and interesting. All things being equal, I suspect will probably going to bounce around 3000 more than anything else.
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This article was originally posted on FX Empire
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