≈ Price test of Resistance ≈
Over the last month or so, price on the major indexes has been mixed. On the Nasdaq, we have seen higher highs, higher lows, and an uptrend. On the Dow and S&P 500 we have seen back and forth between prices levels and a general consolidation or sideways trend. After Monday’s rally, the market has now pushed up into this key resistance zone for the S&P 500. Will it break? We do not know yet, but it is going to be a key test for the market this week that has been meandering back and forth in a range.
If prices can get above resistance, the breakout would be significant. But, until there is price confirmation, we have a good old-fashioned Bull v. Bear battle zone. On the charts you track, it is smart to draw your key levels of support and resistance so that you can prepare for these price zones and build trading plans around them.
Chart of the Day
The SPY is now pushing up against a key resistance zone. Support and resistance are important price levels for any trader to track on the companies and key charts that they watch.
Video of the Day
What is Resistance
A price level or price zone where traders and investors are willing to sell a security, thereby creating supply at that price level, causing the price to stop rising and start falling.
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