The S&P 500 has shown itself to be rather resilient during the week, even though we sold off quite drastically. It looks as if the 3200 level is offering support, an area that has been previous resistance so at this point even though it has been rather ugly, it has been a simple pullback to support. The question now is whether or not we can hang on to the 3200 level? If we do not, then the market is likely to go looking towards the 3100 level which is where the 50 week EMA sits. Underneath there, the 3000 level is worth paying attention to as well, because not only is it structurally important in the past, but it is also a large, round, psychologically significant figure.
S&P 500 Video 28.09.20
A lot of the selling may have been due to US dollar strengthening, I think at this point it is worth paying attention to the fact that we had formed an inverted hammer during the previous week, so it certainly has a lot of resistance above it. Chopping back and forth between now and the election would not be completely out of the realm of possibility, as traders are bit concerned about what happens next. The VIX has settled down a bit, so that could help the markets as well, as we are starting to see the pullback decelerate at the very least. While I am not bullish yet, I think that opportunities will present themselves to the long side if you are patient enough. We may have a week or two of choppy going nowhere, but eventually a decision will be made.
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This article was originally posted on FX Empire