The S&P 500 initially tried to rally during the week but then fell towards the uptrend line which coincided with roughly 2811, and then bounced on Thursday. Thursday was a brutal day, and Friday didn’t provide much in the way of relief, although one should point out that it is Memorial Day weekend in the United States, so the markets will be closed on Monday. With that, the volume would have been light.
S&P 500 Video 27.05.19
However, when we look at the weekly chart we can see that a hammer had formed just above the 2800 level, so that shows just how important that round figure is going to be. I believe at this point if we break down below the 2800 level, this is a market that will probably start to really fall off. Remember, when we get into a bear market like this we do get the occasional rally that is quite stringent. That being said though, for me it’s obvious that we continue to see selling pressure in this market and it seems very likely that we will eventually break down. This is especially true considering how much drama is going on with the US/China trade war, and global growth figures aren’t exactly hot either.
With that being said, I would be suspect of any rallies until we got well above the 2900 level. If we did break above there then we could make it go at the previous double top. I believe that the sellers have gotten firmly in control over the last couple of sessions.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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