The SP500 Index had a strong rejection after failing to get a clean break through the previous resistance at 2950 levels.
The price level has now crossed below 50 days moving average and is testing the support/consolidation area. If the current support level does not hold, we could see a further move to the down side as bearish momentum has been building up since the downturn from 2950 levels and fundamentally the trade tensions between US and China isn't getting any better yet. Investors are still waiting to see what will come out of the meeting between Trump and Xi as they are expected to meet at the G-20 summit in June.
A break below the 200 days moving average will be bad news for the market as it is a historically a strong technical support level that many traders keep a close watch on.
The price level has now crossed below 50 days moving average and is testing the support/consolidation area. If the current support level does not hold, we could see a further move to the down side as bearish momentum has been building up since the downturn from 2950 levels and fundamentally the trade tensions between US and China isn't getting any better yet. Investors are still waiting to see what will come out of the meeting between Trump and Xi as they are expected to meet at the G-20 summit in June.
A break below the 200 days moving average will be bad news for the market as it is a historically a strong technical support level that many traders keep a close watch on.