SPX Weekly $2,950 Resistance Test
The weekly SP500 chart shows price testing, and closing at, $2,950 which has been a major support and resistance level going back to September 2018. Price briefly held above this level for two weeks at the beginning of the coronavirus selloff, but ultimately failed to hold and fell down to the $2,200 level before the relief rally that we’ve seen over the past 7 weeks which has taken us back to this critical level. This will be the main level to watch this upcoming trading week and will likely be the deciding factor as to whether price moves higher, or is once again rejected and puts a re-test of the March lows back in play. Unlike the green candles seen on the daily chart which indicate a bullish trend, the weekly chart failed to show bullish momentum and instead shows gray candles which indicate no momentum behind price which could indicate that a rejection at the $2,950 is more probable than a push above this resistance level.
The Relative Strength Index(RSI) shows the green RSI line hesitating just below the 50 level which is the midpoint of the total RSI range. An RSI reading below 50 indicates bearish short-term momentum while a reading above 50 indicates bullish short-term momentum. The green RSI line is still below its purple signal line which is another bearish momentum indicator.
The Price Percent Oscillator(PPO) shows both the green PPO line and purple signal line both below the 0 level which indicates bearish momentum. However, the green line is rising and on a path to cross above the purple signal line which would be a bullish momentum cross. If that cross occurs, we would want to see both the green PPO line and purple signal line move back above the 0 level. A PPO reading above 0 indicates bullish momentum while a reading below 0 indicates bearish momentum.
The Average Directional Movement Index(ADX) shows the purple directional line above the green directional line which indicates that price remains in a negative direction bias. This histogram behind the directional lines is above the 25 level which indicates a strong trend, but is beginning to tick down which means that the negative trend in price is losing strength. Going forward, we would want to see the green line cross above the purple line as a sign of a bullish price trend, and for the histogram in the background to rise indicating a strong bull trend.
Volume remains bearish with a series of purple bars which indicates that price volume is in a bear trend. Bright purple indicates that price is lower than 10 days prior and volume is higher. Dark purple indicates that price is lower than 10 days prior but volume is lower. Bright green indicates that both price and volume are higher than 10 days prior, while dark green indicates that price is higher than 10 days prior, but volume is lower than 10 days prior. Going forward we would want to see the volume bars turn shades of green in order to reflect a bullish trend in price and volume.
The Relative Strength Index(RSI) shows the green RSI line hesitating just below the 50 level which is the midpoint of the total RSI range. An RSI reading below 50 indicates bearish short-term momentum while a reading above 50 indicates bullish short-term momentum. The green RSI line is still below its purple signal line which is another bearish momentum indicator.
The Price Percent Oscillator(PPO) shows both the green PPO line and purple signal line both below the 0 level which indicates bearish momentum. However, the green line is rising and on a path to cross above the purple signal line which would be a bullish momentum cross. If that cross occurs, we would want to see both the green PPO line and purple signal line move back above the 0 level. A PPO reading above 0 indicates bullish momentum while a reading below 0 indicates bearish momentum.
The Average Directional Movement Index(ADX) shows the purple directional line above the green directional line which indicates that price remains in a negative direction bias. This histogram behind the directional lines is above the 25 level which indicates a strong trend, but is beginning to tick down which means that the negative trend in price is losing strength. Going forward, we would want to see the green line cross above the purple line as a sign of a bullish price trend, and for the histogram in the background to rise indicating a strong bull trend.
Volume remains bearish with a series of purple bars which indicates that price volume is in a bear trend. Bright purple indicates that price is lower than 10 days prior and volume is higher. Dark purple indicates that price is lower than 10 days prior but volume is lower. Bright green indicates that both price and volume are higher than 10 days prior, while dark green indicates that price is higher than 10 days prior, but volume is lower than 10 days prior. Going forward we would want to see the volume bars turn shades of green in order to reflect a bullish trend in price and volume.
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