SPX consolidation break confirmation?
SPX is breaking above 3500 resistance. We had a retest now and a confirmed break above this resistance is giving us a higher probability of the long trade entries. A break below 3500 is now required for the upside invalidation. The overall medium-term is an uptrend but we need to see and a continuation above 3600 to see a hard upside extension. SPX is in the upside continuation price action formation with this break higher above the congestion wedge and a retest bounce.
Note – We are inclined to long trade entries with the stop loss below 3500.
Some strategists anticipate a bid to haven currencies as a hedge against market declines. TD Securities strategists wrote on Tuesday that they expect the dollar, which has weakened this month, to gain for a brief period in part due to “evolving COVID realities.” Societe Generale has recommended options strategies that would benefit from a strengthening in the yen.
But overall, investors largely expect any further slide in U.S. stocks to be fleeting. Restrictions on mobility and economic activity in response to rising COVID-19 cases are likely to be more limited than in the spring, they said. New York City, for instance, has kept stores and restaurants open even as schools close.
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