S&P500 Support and zone Resistance – Old support Technical trading
S&P500 ETF $SPY trading chart. We are going to look at the S&P500 areas of support and resistance.
Watch price action on $SPY we put in a high volume low with sellers capitulating in the Bear Market Price Zone. We called this level in our Live trading room to watch for a bounce.
S&P500 support becomes Resistance
Price broke under the correction level (Red Zone) of 10% from the top and proceeded to Bear Market Price zone in green which acted as support.
In price action trading prior support in a down trend becomes Resistance when price reverses.
The 10% price correction off the top is a consolidated zone that finally broke Mid-December with a volume push and sellers took control of direction. This is where the support level at 2600 will now become resistance.
S&P500 50MA acts as resistance
The 50MA also will act as Resistance (like a ceiling) for the $SPY. Keep this in mind for your strategy and manage your risk first.
This will be a key area as Algos could roll from a net short to an active buy zone.