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SAMT Blog

S&P 500: a matter of levels

26. May 2019, by Mario V. Guffanti
Technical Analysis

In this last period the stock markets are in a corrective phase. One of the analyses that are made in these situations, is that relating to the search for a correct support level. Even the strategists of the investment banks ask themselves the same question, which is linked, as we read on zerohedge website, with  two critical numbers: the Trump put, and the Powell put - these represent the maximum dropdown in stocks that the two most powerful people in the world will allow the S&P to drop before intervening to preserve the "wealth effect", their reputation, confidence in the economy, etc.
 S&P500 daily medium term view

Let’s look now at the most important levels to watch with the use of Technical Analysis. If we consider the daily chart of S&P 500, after the May top at 2.954,13 we could note that we have a lower high that forms a potential head and shoulders pattern. The first projected target for that pattern is at a level that corresponds to the 50% Fibonacci retracement (p1).

Now the price is around 2.800 usd (2...

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