S&P 500 confirms supply absorption with higher targets

29 Apr 2020 recap - S&P 500 ( ES1! ) had a clean and strong breakout of the level 2900 with increasing volume and close near the high. The price spread for yesterday session was large and bullish. This confirms my previous post on the potential supply absorption scenario for S&P 500. Refer to the video yesterday below where I mentioned possible supply absorption for S&P 500 based on the way the up thrust on 28 Apr 2020 turned out:


The strong move yesterday acted as absorption on the way up as compare to spending time within a trading range for consolidation to absorb the supply. As the trend is still progressing well within the up channel with higher high and higher low forming, I expect S&P 500 to challenge higher targets around 2980, 3050 and 3130.

Bias - up

Key levels - Resistance: 2965 (swing high), 2980, 3050 Support: 2930 (swing low), 2900, 2880

Potential setup - I am looking for a test of the swing low near 2930 to initiate long position if the S&P 500 can bounce up on this level, with a stop loss below 2922. The first take profit target at the swing high near 2965.

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