S&P 500 added 70 points back into its pocket yesterday and we could see that the bulls were dictating the rules throughout the whole US trading session. If this is not just a temporary move, then we could see some more strength coming in later on today or even this week. Also, looking at the bigger picture, we can see that S&P 500 is forming a triangle and we could see the future price action staying within this triangle for a while.
If we see a move towards the 2680-2691 area, then this could bring the price towards the short-term tentative downwards trendline that is running from the 13th of March. A strong break above it could push the index back up to its previous key resistance levels of 2730 or even the 2755.
On the downside, a move below the 2653 barrier could pull S&P 500 back down towards the strong support line at 2620, where the index will have to decide on its forthcoming direction. A break below that area could force the index to test the bottom side of the aforementioned triangle.
If we see a move towards the 2680-2691 area, then this could bring the price towards the short-term tentative downwards trendline that is running from the 13th of March. A strong break above it could push the index back up to its previous key resistance levels of 2730 or even the 2755.
On the downside, a move below the 2653 barrier could pull S&P 500 back down towards the strong support line at 2620, where the index will have to decide on its forthcoming direction. A break below that area could force the index to test the bottom side of the aforementioned triangle.