- The S&P 500 is currently experiencing volatility, with focus on US consumer confidence data.
- Resistance is observed around the 4210 level, forming a double top pattern.
- Support levels to watch are around 4175 and 4150, while a break above 4215 could lead to higher levels.
Good morning everyone!
The S&P 500 is currently experiencing some volatility as we enter the middle of the trading week. Today, the focus will be on the release of consumer confidence data from the US economy, which is expected to have an impact on the price action of the S&P 500.
Currently, the index is trading around the 4205 level and facing resistance around 4210. This level has now formed a double top pattern, indicating a potential reversal. The formation of bearish candlesticks below the 50-day exponential moving average further supports the possibility of a bearish continuation.
However, before we see a potential bearish continuation, there is a possibility of a minor correction in the S&P 500, with support expected around the 4175 level or even down to 4150. Today, it is important to monitor the 4215 level as it is likely to act as a pivot point.
Below this level, we can expect a bearish sentiment, while above it, a bullish sentiment may prevail. A break above the 4215 level could expose the S&P 500 to higher levels such as 4250 or even 4299. On the downside, key support levels are likely to be found around 4150 and 4103.
Let’s keep a close eye on these levels and observe the price action of the S&P 500 throughout the day.
SPX S&P500 – Trade Idea
Entry Price – Buy Above 4178
Stop Loss – 4131
Take Profit – 4250
Risk to Reward – 1 : 1.5
Profit & Loss Per Standard Lot = +$720/ -$470
Profit & Loss Per Micro Lot = +$72/ -$47
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