$SPX Just Reclaimed Its Most Important Levels. Now What? 👀
$S&P 500(.SPX)$ closed at 7500.6, up 1.1% on the session reclaiming its central weekly and monthly levels in the same move. The session brought a bounce from yesterday's breakdown. The price action showed indecision rather than strong conviction closing the day without a clear directional candle.
Worth noting: SPX is sitting very close to its central weekly level for next week (CWL, details below), meaning that line is being tested right now. The recovery of both the CWL and the CML today is a constructive short-term development, and holding them through the next session will be essential to keep momentum and break above the bearish diagonal.
The Stochastic crossover suggests caution, most of them have been validated, losing next week’s CWL would be a validation sign. For the bullish scenario, it’s unlikely to see a divergence like the one observed in April, since the price is not that oversold.
The Support and Resistance Levels updated for next week are here, they worked to set the bullish and bearish targets for the setups studied a week ago.
These levels are modeled every Friday for you, providing the information needed to assess risk and reward before the market opens on Monday. You don’t have to wait for the opening bell to decide your plan and which securities to trade; you have here the distances to essential levels and the setups suggesting whether they will act as support or resistance well in advance, so you make informed and serene decisions ahead of Monday morning.
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