S&P 500 shows further weakness ahead - daily market analysis

23 Apr 2020 recap -After the announcement of the jobless claims report, S&P 500 rallied up above 2800. The up swing continued after the US session opened and tested the axis line of 2830 as mentioned in my previous video on 23 Apr 2020 on the short squeeze scenario.

Yet, the rally was unsustainable and closed lower at 2780.75. This was the first time for the S&P 500 ( ES1! ) to close lower after the jobless claims report since the tremendous spike in jobless claims numbers started in 26 Mar 2020.


Yesterday's candle tested the channel line as resistance, the breakdown bar on 21 Apr 2020 and the axis line at 2830, followed by a rejection and closed at the low.

Further weakness could lead S&P 500 to test lower levels of support at 2750 and 2716. A break below 2716 should S&P 500 to test 2625, which is an important level.

Bias - down

Key levels - Resistance: 2800, 2830 Support: 2750, 2716, 2625

Potential setup - look for a rejection from the previous day low at 2784 or a test into the last hour bar 2787–2812 to initiate short entry. First target at the swing low at 2715 with a stop loss above 2819.