After trading up to an intraday high of 5200.23 – a nice round number for the index – the S&P index has reversed to the downside and now trade near unchanged at 5180.60. At session highs, the index was up 19.50 points. The low price just reached -1.77 points.
It’s never good when a process thaws against a nice round number. At the very least, it increases the levels risk defining level. It gives sellers (in this case) the opportunity to lean against level going forward. Staying below 5200 is more bearish. it would take a move above to increase the bullish bias.
On the downside, the price gapped higher from Friday to Monday with a low yesterday of 5148.09. That would be a downside target going forward. The broken 61.8% retracement of the move down from the April high comes in at 5145.94 and would be another target on increased selling momentum.
This article was written by Greg Michalowski at www.forexlive.com.
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