Why is $2040 so important for the S&P500? When we look at a longer term price chart we see that the index has found support at that level (green horizontal line) numerous times (blue arrows) and each breakdown let to around SPX2020-1990 or much lower. The red horizontal line shows the importance of the SPX1990 level (red arrows). Again the S&P500 found support right there and then on Monday.
Note the four overhead trend-lines with price stalling on Friday right at the 2nd highest. As price moved quickly through the lower two trend lines, we expect price to find support at these before moving higher. A drop below SPX2040 from here on will of course be very bearish. But, not until that happens should we continue to look up instead.
Note the next 34-day trading interval is set for July 11 and should signal another market turn, as all other 34d intervals have done in the past.
Re-posted, in part, from our June 29 daily update available to premium members only. Please click here to become a premium member too so you get all this info and more first, and have the edge.